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i

THE LABOR CODE OF THE PHILIPPINES

ANNOTATED

Volume I

LABOR STANDARDS AND SOCIAL LEGISLATION

[Articles 1 to 210, Labor Code]

By

JOSELITO GUIANAN CHAN

Practising Lawyer, Professor of Law and Bar Reviewer

Second Edition, 2009

Revised and Enlarged

ii

© Philippine Copyright

1997 and 2009

By

JOSELITO GUIANAN CHAN

Second Edition, 2009 Revised and Enlarged

All Rights Reserved

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_______________________

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Serial

No.

____________

ISBN 978-971-94365-1-5

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iii

iii Republic of the Philippines BLAS F. OPLE Senator SENATE Manila FOREWORD Since the labor laws

Republic of the Philippines

BLAS F. OPLE

Senator

SENATE

Manila

FOREWORD

Since the labor laws of the country were codified in the Seventies during my incumbency as Labor Secretary, the Labor Code has undergone a series of revisions both by acts of the legislature and by executive fiat. Taken with the numerous labor and social legislations bearing upon the field of labor and employment as well as the myriad rules implementing the Labor Code and related laws, the subject could be utterly confusing and rather complicated.

Through the years, it has been noted that only very few annotations and commentaries have been written on the Labor Code. This is unfortunate considering its significance and impact on the lives of millions comprising the backbone of our nation. This book by Atty. Joselito Guianan Chan is certainly a welcome addition to the sparse bibliography on the Labor Code.

Like a master craftsman, Atty. Chan has carefully sifted through the maze of existing and old laws, rules and regulations and other executive issuances and jurisprudential precepts, to “separate the grain from the chaff,” so to speak, to bring us to the crux of things. He has intricately woven all these materials into a smooth-flowing and compelling discussion of the current status of the law and its intricacies, correlated with all relevant topics.

In treating the more difficult or doubtful questions of the law, he provides us with incisive analysis and in-depth discussion of the legal issues at hand, with appropriate reference to the leading and latest judicial precedents, supplemented with a glimpse of the legislative history of the provisions under consideration, whenever necessary.

The long years of legal practice and experience of Atty. Chan, both in the courtroom as an advocate of the law, and in the classroom as professor of law, not to mention his able stewardship of his law firm and skillful advocacy of his clients’ causes, have no doubt contributed in the formation and crystallization of this authoritative and comprehensive work.

Indeed, no law library would be complete without a copy of this masterpiece. Students and practitioners will surely find this book invaluable.

Senate of the Philippines, Manila, 14 August 1996.

iii Republic of the Philippines BLAS F. OPLE Senator SENATE Manila FOREWORD Since the labor laws

(Sgd.) BLAS F. OPLE

2 nd Floor, Marbella Manila Bldg., 2071, Roxas Blvd., Manila Tel. 536-0259

iv

PREFACE

Second Revised Edition, 2009

The first edition of this first volume of my 2-volume series on the Labor Code was first published in 1997 or about 12 years ago. Its Volume II has already been revised 4 times, the latest of which was issued early this year. Most recent significant amendatory laws passed by Congress, recent issuances of labor authorities and new pronouncements of the Supreme Court made the revision of this book imperative and compelling indeed.

This latest edition is dedicated to the memory of the late Blas F. Ople, the Father of the Labor Code, the longest-serving Minister of Labor and Employment (19 years), the first Filipino to be elected President of the International Labor Organization (ILO) at its 60 th General Assembly for which he was awarded a Gold Medal of Appreciation, a distinguished member of the Constitutional Commission which drafted the 1987 Constitution, President of the Philippine Senate (1999-2000) and incumbent Secretary of the Department of Foreign Affairs at the time of his demise in 2003. Ka Blas graciously wrote the Foreword to this 2-volme series in 1996. I cannot repay the precious time he gave up to go over the manuscript of its first edition. Indeed, I am bound in lasting gratitude.

Joselito Guianan Chan

Chan Robles Law Firm

Philippine Stock Exchange Centre Exchange Road Ortigas Center Pasig City Metro Manila

June 15, 2009

v

TABLE OF CONTENTS

THE LABOR CODE OF THE PHILIPPINES

PRESIDENTIAL DECREE NO. 442, AS AMENDED

A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO

AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE

INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE

PRELIMINARY TITLE

Chapter I…………………………………………………………………………………… ….…………………………………… 1

..

..

GENERAL PROVISIONS…………………………………………………………………

...

……………………………………….1

Article 1. Name of Decree……………………………………………………………………………………………………….1

NOTES AND COMMENTS:

  • 1. CODIFICATION OF LABOR LAWS…1; 2. GENERAL STRUCTURE OF THE LABOR CODE…3; 3. LABOR

LAWS PRIOR TO THE ADVENT OF THE LABOR CODE…5; 4. LAWS AMENDING THE LABOR CODE…7; 5.

OTHER LABOR-RELATED LAWS AND SOCIAL LEGISLATIONS…12; 6. RELEVANT CIVIL CODE

PROVISIONS…16; 7. RELEVANT REVISED PENAL CODE PROVISIONS…17; 8. SUPPLETORY

APPLICATION OF THE REVISED RULES OF COURT IN LABOR PROCEEDINGS…19; 9. CHANGE IN

NAMES AND REFERENCES…19.

Article 2. Date of Effectivity……………………

...

……………………………………………………………………………20

NOTES AND COMMENTS:

  • 1. DATE OF EFFECTIVITY OF THE LABOR CODE…20.

Article 3. Declaration of Basic Policy…………………………………………………………………………………………20

NOTES AND COMMENTS:

  • 1. CONSTITUTIONAL BASES…20; 2. LEGAL MANDATE UNDER ARTICLE 3…23; 3. POLICE POWER OF

THE STATE…24.

Article 4. Construction in Favor of Labor…………………………………………………………………………… ……

..

...

24

NOTES AND COMMENTS:

  • 1. PROPER CONSTRUCTION AND INTERPRETATION…24; 2. DOUBT OR AMBIGUITY IN LABOR

CONTRACTS…26; 3. DOUBT OR AMBIGUITY IN EVIDENCE…26; 4. WHEN RULE IN ARTICLE 4 DOES NOT

APPLY…27.

Article 5. Rules and Regulations……………………………………………………………………………………………

...

28

NOTES AND COMMENTS:

  • 1. AGENCIES EMPOWERED TO PROMULGATE RULES…28; 2. RULES TO IMPLEMENT THE LABOR

CODE…28; 3. DATE OF EFFECTIVITY OF THE RULES TO IMPLEMENT THE LABOR CODE…28; 4.

NATURE OF AND LIMITATION ON THE RULE-MAKING POWER…28; 5. PUBLICATION OF THE

IMPLEMENTING RULES AND REGULATIONS…30; 6. CONSEQUENCE OF DECLARATION OF NULLITY OF

A LAW OR ITS IMPLEMENTING RULES…32.

Article 6. Applicability………………………………………………………………………………………………….……

...

33

NOTES AND COMMENTS:

  • 1. APPLICABILITY OF THE LABOR CODE…33; 2. EXCEPTED WORKERS…33; 3. APPLICABILITY OF

TITLE II OF BOOK IV OF THE LABOR CODE TO GOVERNMENT EMPLOYEES…34; 4. APPLICABILITY OF

THE LABOR CODE TO EMPLOYEES OF GOVERNMENT-OWNED AND/OR CONTROLLED

CORPORATIONS…34; 5. EXISTENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP…35; 6. CASES WHERE

EMPLOYMENT RELATIONSHIP EXISTS…47; 7. CASES WHERE EMPLOYMENT RELATIONSHIP DOES

NOT EXIST…50; 8. CASES WHERE THE LABOR CODE CONSIDERS THE EMPLOYMENT RELATIONSHIP

SUSPENDED…50; 9. CIRCUMSTANCES WHICH DO NOT AFFECT THE EMPLOYMENT

RELATIONSHIP…51; 10. TERMINATION OF THE EMPLOYMENT RELATIONSHIP…52; 11. CASE WHERE

THE LAW ITSELF DOES NOT CREATE THE EMPLOYMENT RELATIONSHIP…54; 12. EXISTENCE OF

EMPLOYMENT RELATIONSHIP, BOTH A QUESTION OF FACT AND LAW…55; 13. QUANTUM OF

EVIDENCE REQUIRED TO PROVE EMPLOYMENT RELATIONSHIP…55.

Chapter II……………………………………………………………………………………………….……………………………58

EMANCIPATION OF TENANTS…………………………………………………………………….……………………………58

Article 7. Statement of Objectives…………………………………………………………………

...

………………

....

………58

Article 8. Transfer of Lands to Tenant-Workers…………………………………………………………………

...

…………58

Article 9. Determination of Land Value…………………………………………………………………

...

…………….……58

Article 10. Conditions of Ownership…………………………………………………………………

...

………………

...

...

58

Article 11. Implementing Agency…………………………………………………………………

…………………………58 ...

NOTES AND COMMENTS:

  • 1. CONSTITUTIONAL BASIS…59; 2. HISTORICAL PERSPECTIVE…59; 3. THE COMPREHENSIVE

AGRARIAN REFORM LAW OF 1988…61.

BOOK ONE

PRE-EMPLOYMENT

Article 12. Statement of Objectives…………………………………………………… ………

..

...

……………………………63

NOTES AND COMMENTS:

  • 1. MANPOWER TRAINING, ALLOCATION AND UTILIZATION…63; 2. REGULATING LOCAL AND

OVERSEAS EMPLOYMENT…63; 3. REGULATING THE EMPLOYMENT OF ALIENS…64.

Title I………………………………………………………………… ……………………………………………………………… 65

...

....

RECRUITMENT AND PLACEMENT OF WORKERS……………………………………………………………………… …65 ....

vi

Chapter I………………………………………………………………… ………………………………………………………… …65

...

..

GENERAL PROVISIONS………………………………………………………………… ……………………………………… 65

...

....

Article 13. Definitions……………………………… ………………………… ………………………………………………65

...

...

NOTES AND COMMENTS:

  • 1. DEFINITIONS ACCORDING TO THE LABOR CODE, R.A. NO. 8042 AND POEA RULES…65; 2. DEFINITION

OF THE TERM “WORKER.”…66; 3. RECRUITMENT AND PLACEMENT OF WORKERS…68; 4. PRIVATE

EMPLOYMENT AGENCY…68; 5. PRIVATE RECRUITMENT ENTITY…69; 6. LICENSE OR AUTHORITY…69;

  • 7. DISTINCTION BETWEEN A PRIVATE EMPLOYMENT AGENCY AND PRIVATE RECRUITMENT

ENTITY…69; 8. OVERSEAS EMPLOYMENT…69; 9. MIGRANT WORKERS AND OVERSEAS FILIPINO

WORKERS…70; 10. DOCUMENTED AND UNDOCUMENTED MIGRANT WORKERS…71; 11. SKILLED AND

UNDERAGED MIGRANT WORKERS…71; 12. SEAMAN OR SEAFARER…71; 13. EMIGRANT…72.

Article 14. Employment Promotion………………………………………………………………… …………………….……72 ...

NOTES AND COMMENTS:

  • 1. POWER OF THE SECRETARY OF LABOR AND EMPLOYMENT…72; 2. FREE PLACEMENT SERVICES BY

PUBLIC EMPLOYMENT OFFICES FOR DOMESTIC AND OVERSEAS WORK…72; 3. PLACEMENT OF

WORKERS…72; 4. VOCATIONAL GUIDANCE AND TESTING…73; 5. OCCUPATIONAL CLASSIFICATION

OF REGISTERED APPLICANTS…73; 6. OCCUPATIONAL-INDUSTRIAL MOBILITY OF WORKERS…73; 7.

GEOGRAPHICAL MOVEMENT OF WORKERS…73; 8. JOB CLEARANCE AND INFORMATION

SYSTEM…73; 9. SUBMISSION OF REPORTS…73.

Article 15. Bureau of

Employment Services………………………………………………………………… …………… …73

...

...

NOTES AND COMMENTS:

  • 1. BUREAU OF LOCAL EMPLOYMENT (BLE)…74; 2. FUNCTIONS OF THE BLE…74; 3. DECENTRALIZED

FUNCTIONS…75.

Article 16. Private Recruitment…………………………………………………………………

...

……………………………

....

75

NOTES AND COMMENTS:

  • 1. PUBLIC EMPLOYMENT OFFICES…75; 2. PUBLIC EMPLOYMENT SERVICE OFFICE ACT OF 1999 (R.A.

NO. 8759)…76; 3. JOBS FAIR…79.

Article 17. Overseas Employment Development Board………………………………………………………………… ….…79 ...

NOTES AND COMMENTS:

  • 1. REPEAL OF ARTICLE 17 BY EXECUTIVE ORDER NO. 797…79; 2. POWERS AND FUNCTIONS OF THE

POEA…80; 3. PROVISION ON DEREGULATION AND PHASE-OUT OF THE RECRUITMENT AND

REGULATORY FUNCTIONS OF THE POEA REPEALED BY R.A. NO. 9422 [APRIL 10, 2007]…81; 4.

DECENTRALIZATION OF SOME POEA SERVICES…81; 5. VALIDITY OF THE RULES AND REGULATIONS

ISSUED BY THE POEA…82; 6. NATIONALITY OF EMPLOYER NOT MATERIAL…83; 7. RULES

GOVERNING THE RECRUITMENT AND PLACEMENT FOR OVERSEAS EMPLOYMENT BY THE POEA…83;

  • 8. STATEMENT OF POLICY

...

83;

9. RECRUITMENT, HIRING AND PLACEMENT BY AND THROUGH THE

POEA…84; 10. WELFARE SERVICES OF POEA FOR LAND-BASED OVERSEAS WORKERS…85; 11.

ASSISTANCE OF POEA TO SEAFARERS…85; 12. CONCILIATION BY POEA OF COMPLAINTS INVOLVING

LAND-BASED OVERSEAS WORKERS…86; 13. REPATRIATION OF LAND-BASED OVERSEAS WORKERS

AND SEAFARERS…86; 14. WAR-RISK AREAS AND INSURANCE OF LAND-BASED OVERSEAS WORKERS

AND SEAFARERS…88; 15. EDUCATION PROGRAM APPLICABLE TO THE RECRUITMENT AND

DEPLOYMENT OF LAND-BASED OVERSEAS WORKERS AND SEAFARERS…88; 16. MANPOWER

REGISTRATION OF LAND-BASED OVERSEAS WORKERS…90; 17. MANPOWER RESEARCH AND

DEVELOPMENT FOR LAND-BASED OVERSEAS WORKERS AND SEAFARERS…90; 18. REPRESENTATION

IN CONGRESS…91; 19. PARTICIPATION OF OFWs IN OVERSEAS ABSENTEE VOTING…91; 20. MIGRANT

WORKERS DAY…92; 21. TRANSFER OF WELFARE SERVICES TO OWWA (APPLICABLE TO BOTH LAND-

BASED OVERSEAS WORKERS AND SEAFARERS)…93; 22. GENERAL AND MISCELLANEOUS PROVISIONS

FOR LAND-BASED OVERSEAS WORKERS AND SEAFARERS…93.

Article 18.

Ban on Direct-Hiring………………………………………………………………… …………………………….93 ...

NOTES AND COMMENTS:

  • 1. BAN ON DIRECT-HIRING…93; 2. RATIONALE FOR THE BAN…93; 3. SUABILITY OF FOREIGN

CORPORATIONS DIRECTLY HIRING FILIPINO WORKERS…94.

Article 19. Office of Emigrant Affairs…………………………………………………………………

………………………94 ...

NOTES AND COMMENTS:

  • 1. ABOLITION OF OFFICE OF EMIGRANT AFFAIRS…95; 2. COMMISSION ON FILIPINOS OVERSEAS

(CFO)…95; 3. POWERS AND FUNCTIONS OF THE CFO…95; 4. OTHER RELEVANT PROVISIONS OF BATAS

PAMBANSA BILANG 79…96.

Article 20. National Seamen Board………………………………………………………………… …………………….……96 ...

NOTES AND COMMENTS:

  • 1. REPEAL OF PARAGRAPH [A] OF ARTICLE 20…97; 2. REPEAL OF PARAGRAPH [B] BY REPUBLIC ACT

NO. 8042…99; 3. JURISDICTION OVER MONEY CLAIMS CASES OF OFWs…99; 4. NLRC PROCEDURAL

RULES UNDER THE NEW LAW…100; 5. EMPLOYER-EMPLOYEE RELATIONS CASES WHERE

VIOLATIONS OF RECRUITMENT REGULATIONS ARE ALLEGED AND/OR UNCOVERED…102; 6. NATURE

OF EMPLOYMENT OF OVERSEAS FILIPINO WORKERS…102; 7. TERMINATION OF EMPLOYMENT OF

OFWs…105; 8. CLAIMS OF OFWs FOR DISABILITY, DEATH AND OTHER BENEFITS…112; 9. AWARD IN

FOREIGN CURRENCY, HOW COMPUTED…123; 10. BURDEN OF PROOF IN TERMINATION CASES

INVOLVING OFWs…124; 11. QUANTUM OF EVIDENCE…125; 12. JOINT AND SOLIDARY LIABILITY OF

LOCAL AGENCY AND ITS PRINCIPAL…126.

Article 21. Foreign Service Role and Participation…………………………………………………………………

…….…130 ...

vii

NOTES AND COMMENTS:

1.

PROTECTION OF MIGRANT WORKERS AND OVERSEAS FILIPINOS…131; 2. RIGHTS AND

ENFORCEMENT MECHANISM UNDER INTERNATIONAL AND REGIONAL HUMAN RIGHTS

SYSTEMS…136; 3. COUNTRY-TEAM APPROACH…137; 4. INCENTIVES TO PROFESSIONALS AND OTHER

HIGHLY-SKILLED FILIPINOS ABROAD…138; 5. TRAVEL ADVISORY AND INFORMATION

DISSEMINATION…138; 6. FUNDS ESTABLISHED FOR MIGRANT WORKERS AND OVERSEAS FILIPINOS

UNDER REPUBLIC ACT NO. 8042…138; 7. WELFARE FUND FOR OVERSEAS WORKERS…141; 8.

PERFORMING ARTISTS PROVIDENT FUND…142; 9. MANDATORY LIFE AND PERSONAL ACCIDENT

INSURANCE COVERAGE OF OFWs…142; 10. MEDICAL CARE PROGRAM FOR OFWs AND

DEPENDENTS…145; 11. TRANSFER OF MEDICARE FUNDS AND FUNCTIONS FROM OWWA TO PHIC…145.

Article 22. Mandatory Remittance of Foreign Exchange Earnings……………………………………………………….…145

NOTES AND COMMENTS:

 

1.

MANDATORY OBLIGATION TO REMIT FOREIGN EXCHANGE EARNINGS…145; 2. GUIDELINES AND

MECHANISM TO FACILITATE REMITTANCES…151; 3. LATEST FIGURES ON OFW REMITTANCES…154;

4.

OVERSEAS WORKERS INVESTMENT FUND…155.

 

Article 23. Composition of the Boards…………………………………………………………………

...

…………………… 160

NOTES AND COMMENTS:

 

1.

AMENDMENT OF ARTICLE 23 BY EXECUTIVE ORDER NO. 247…160; 2. STRUCTURAL ORGANIZATION

OF THE POEA…161.

 

Article 24. Boards to Issue Rules and Collect Fees………………………………………………………………… ….……161 ...

NOTES AND COMMENTS:

 

1.

RULE-MAKING POWER UNDER ARTICLE 24…162; 2. POWER OF THE POEA TO IMPOSE AND

COLLECT FEES…162.

 

Chapter II………………………………………………………………… ………………………………………………………… 163

...

REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES……………………………………………….….…163

Article 25. Private Sector Participation in the Recruitment and Placement of Workers………………………………

….163 ....

Article 26. Travel Agencies Prohibited to Recruit…………………………………………………………………………… 163 ..

Article 27. Citizenship Requirement……………………………………………………………………………………………163

Article

28.

Capitalization………………………………………………………………… ………………………………… 163

...

Article 29. Non-Transferability of License or Authority………………………………………………………………………163

Article

30.

Registration Fees………………………………………………………………… ……………………………… 163

...

Article 31. Bonds…………………………………………………………………

………………………………………….…163 ...

NOTES AND COMMENTS:

 

1.

JOINT DISCUSSION OF ARTICLES 25 TO 31 OF THE LABOR CODE…163; 2. RECRUITMENT AND

PLACEMENT FOR LOCAL OR OVERSEAS EMPLOYMENT…164; 3. APPLICABLE RULES TO

RECRUITMENT AND PLACEMENT OF WORKERS…164; 4. RECRUITMENT AND PLACEMENT FOR

LOCAL EMPLOYMENT…165; 5. RECRUITMENT AND PLACEMENT FOR OVERSEAS EMPLOYMENT…170.

Article 32. Fees to be Paid by Workers…………………………………………………………………

...

………………….…199

NOTES AND COMMENTS:

 

1.

FEES TO BE PAID FOR LOCAL EMPLOYMENT…199; 2. FEES TO BE PAID FOR OVERSEAS

EMPLOYMENT…200.

 

Article 33. Reports on Employment Status………………… ……………………………………………… ………… 202

........

NOTES AND COMMENTS:

 

1.

REPORTS REQUIRED…202; 2. QUALIFYING STANDARD IN THE EXERCISE OF THE REGULATORY

POWER…202; 3. CONSEQUENCE OF FAILURE TO COMPLY WITH REPORTORIAL REQUIREMENTS…202.

Article 34. Prohibited Practices…………………………………………………………………

...

…………………………….202

NOTES AND COMMENTS:

 

1.

ACTS OR PRACTICES PROHIBITED UNDER ARTICLE 34…203; 2. APPLICABILITY OF ARTICLE 34 TO

LOCAL AND OVERSEAS EMPLOYMENT…206; 3. PROHIBITED ACTS AND PRACITCES IN LOCAL

EMPLOYMENT

206;

4. PROHIBITED ACTS AND PRACTICES IN OVERSEAS EMPLOYMENT…208.

 

Article 35. Suspension and/or Cancellation of License or Authority………………………………………………………

....

208

NOTES AND COMMENTS:

 

1.

RECRUITMENT VIOLATIONS AND RELATED CASES…208; 2. GROUNDS FOR THE IMPOSITION OF

ADMINISTRATIVE SANCTIONS AGAINST FOREIGN PRINCIPALS OR EMPLOYERS UNDER THE 2002

POEA RULES GOVERNING THE RECRUITMENT AND PLACEMENT OF LAND-BASED OVERSEAS

WORKERS…209; 3. GROUNDS FOR THE IMPOSITION OF ADMINISTRATIVE SANCTIONS AGAINST

FOREIGN PRINCIPALS OR EMPLOYERS UNDER THE 2003 POEA RULES AND REGULATIONS

GOVERNING THE RECRUITMENT AND EMPLOYMENT OF SEAFARERS…211; 4. CLASSIFICATION OF

OFFENSES OF FOREIGN PRINCIPALS AND EMPLOYERS AND SCHEDULE OF PENALTIES IN

CONNECTION WITH THE RECRUITMENT AND PLACEMENT OF LAND-BASED OVERSEAS WORKERS

AND SEAFARERS…212; 5. PROCEDURAL RULES APPLICABLE TO CASES COGNIZABLE BY THE

POEA…219; 6. APPEAL OR PETITION FOR REVIEW FROM THE DECISIONS OF THE POEA IN

RECRUITMENT VIOLATION CASES AND OTHER RELATED CASES (APPLICABLE TO BOTH LAND-BASED

WORKERS AND SEAFARERS)…223; 7. FACTUAL FINDINGS OF POEA, GIVEN FINALITY…224; 8.

EXECUTION OF DECISIONS IN CASES FILED BY LAND-BASED OVERSEAS WORKERS AND

SEAFARERS…225; 9. DISCIPLINARY ACTION CASES AGAINST FOREIGN PRINCIPALS OR EMPLOYERS

OF LAND-BASED WORKERS AND SEAFARERS…227; 10. DISCIPLINARY ACTION CASES AGAINST

OFWs…228; 11. APPEAL OR PETITION FOR REVIEW IN DISCIPLINARY ACTION CASES INVOLVING

LAND-BASED OVERSEAS WORKERS AND SEAFARERS…236; 12. COMMON PROCEDURAL PROVISIONS

viii

UNDER THE POEA RULES APPLICABLE TO BOTH LAND-BASED OVERSEAS WORKERS AND

SEAFARERS…237.

Chapter III………………………………………………………………… …………………………………………………………239 ...

MISCELLANEOUS PROVISIONS…………………………………………………………………

...

…………………….……….239

Article 36. Regulatory Power…………………………………………………………………

……………………….………239 ...

NOTES AND COMMENTS:

  • 1. NATURE OF POWER…239; 2. EXERCISE OF THE REGULATORY POWER…239.

Article 37. Visitorial Power………………………………………………………………… …………………………………239 ...

NOTES AND COMMENTS:

  • 1. VISITORIAL POWER UNDER ARTICLE 37…240; 2. EFFECT OF OBSTRUCTION OF EXERCISE OF

VISITORIAL POWER…240.

Article 38. Illegal

Recruitment………………………………………………………………… …………………………… 240

...

...

NOTES AND COMMENTS:

  • 1. APPLICATION OF ARTICLE 38 TO BOTH LOCAL AND OVERSEAS EMPLOYMENT…241; 2. CONCEPT OF

ILLEGAL RECRUITMENT…241; 3. ILLEGAL RECRUITMENT AS DEFINED IN VARIOUS LAWS AND

RULES…241; 4. ELEMENTS OF SIMPLE ILLEGAL RECRUITMENT…245; 5. ANY PERSON, WHETHER A

NON-LICENSEE, NON-HOLDER, LICENSEE OR HOLDER OF AUTHORITY MAY BE HELD LIABLE FOR

ILLEGAL RECRUITMENT…253; 6. ILLEGAL RECRUITMENT, WHEN CONSIDERED ECONOMIC

SABOTAGE…255; 7. A PERSON, FOR THE SAME ACTS, MAY BE CHARGED AND CONVICTED

SEPARATELY FOR THE CRIME OF ILLEGAL RECRUITMENT AND THE FELONY OF ESTAFA…258; 8.

PERSONS CRIMINALLY LIABLE FOR ILLEGAL RECRUITMENT…260; 9. ADMINISTRATIVE ACTION

AGAINST THE LICENSEE OR HOLDER OF AUTHORITY, SEPARATE AND DISTINCT FROM THE

CRIMINAL ACTION FOR ILLEGAL RECRUITMENT…263; 10. GOVERNMENT OFFICIALS AND

EMPLOYEES ARE PROHIBITED TO PARTICIPATE IN THE RECRUITMENT OF OFWs…263; 11. ANTI-

ILLEGAL RECRUITMENT PROGRAMS…263; 12. CLOSURE ORDER…265; 13. POWER OF DOLE

SECRETARY TO ISSUE WARRANTS OF ARREST AND SEARCH AND SEIZURE…267; 14. WARRANTLESS

ARREST AND SEARCHES AND SEIZURES…269; 15. JUDICIAL RECOURSE IN THE FILING OF CRIMINAL

ACTION FOR ILLEGAL RECRUITMENT…269; 16. PRESCRIPTIVE PERIOD OF ILLEGAL RECRUITMENT

CASES…270.

Article 39. Penalties…………………………………………………………………

...

…………………………………………271

NOTES AND COMMENTS:

  • 1. PENALTIES IN GENERAL…272; 2. PENALTIES IN CASE OF ILLEGAL RECRUITMENT CONSTITUTING

ECONOMIC SABOTAGE…273; 3. PENALTY FOR VIOLATIONS COMMITTED BY LICENSEES OR HOLDERS

OF AUTHORITY…273; 4. PENALTY FOR VIOLATIONS COMMITTED BY NON-LICENSEES OR NON-

HOLDERS OF AUTHORITY…274; 5. CIRCUMSTANCES THAT JUSTIFY THE IMPOSITION OF THE

MAXIMUM PENALTY…275; 6. APPLICATION OF THE INDETERMINATE SENTENCE LAW…275; 7.

AWARD OF DAMAGES TO VICTIMS OF ILLEGAL RECRUITMENT…276; 8. IMPOSITION OF LEGAL

INTEREST ON THE ACTUAL DAMAGES AWARDED IN ILLEGAL RECRUITMENT CASES…277; 9.

PERSONS LIABLE FOR ILLEGAL RECRUITMENT IF COMMITTED BY JURIDICAL PERSONS…277; 10.

EFFECT OF CONVICTION…277; 11. NON-APPLICABILITY OF ARTICLE 288 OF THE LABOR CODE TO

ILLEGAL RECRUITMENT CASES…277.

Title II………………………………………………………………… ………………………………………………………………278 ...

EMPLOYMENT OF NON-RESIDENT ALIENS………………………………………………………………… …………… 278

...

...

Article 40. Employment Permit of Non-Resident Aliens…278

NOTES AND COMMENTS:

  • 1. BASIC PRINCIPLES INVOLVED IN THE HIRING OF ALIEN WORKERS…278; 2. REVISED RULES FOR

THE ISSUANCE OF EMPLOYMENT PERMITS TO FOREIGN NATIONALS…279; 3. UNDERSTUDY

TRAINING PROGRAM (UTP) NO LONGER REQUIRED…285; 4. SPECIAL VISA FOR EMPLOYMENT

GENERATION (SVEG) ISSUED TO NON-IMMIGRANTS…285.

Article 41. Prohibition Against Transfer of Employment……………………………………………………………….…….287

NOTES AND COMMENTS:

  • 1. PROHIBITION AND GROUNDS FOR CANCELLATION OF THE AEP…287; 2. PENALTY FOR VIOLATION

OF TITLE II OF BOOK I…287.

Article 42. Submission of List…………………………………………………………………

………………………………287 ...

NOTES AND COMMENTS:

  • 1. REQUIRED SUBMISSION OF LIST UNDER ARTICLE 42…287; 2. SUBMISSION OF LIST OF ALIENS

EMPLOYED…288.

BOOK TWO

HUMAN RESOURCES DEVELOPMENT PROGRAM

Title I………………………………………………………………… ……………………………………………………………… 289

...

..

NATIONAL MANPOWER DEVELOPMENT PROGRAM………………………………………………………………… 289 .......

Chapter I………………………………………………………………… ………………………………………………….……… 289

...

...

NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION…………………289

NOTES AND COMMENTS:

  • 1. INTRODUCTION…289.

Article 43. Statement of Objective………………………………………………………………… ………………………….289 ...

NOTES AND COMMENTS:

  • 1. DECLARATION OF POLICY UNDER THE TESDA ACT OF 1994 [R.A. NO. 7796]…289; 2. STATEMENT OF

GOALS AND OBJECTIVES…290.

Article 44. Definitions………………………………………………………………… …………………………………… 290

...

.....

NOTES AND COMMENTS:

ix

  • 1. TERMS DEFINED UNDER THE RULES TO IMPLEMENT BOOK II OF THE LABOR CODE…290; 2.

RELEVANT TERMS DEFINED UNDER THE TESDA ACT OF 1994…292.

Article 45. National Manpower and Youth Council, Composition…………………………………………………………

....

294

NOTES AND COMMENTS:

  • 1. TESDA REPLACED AND ABSORBED NMYC…294; 2. CREATION OF TESDA…294.

Article 46. National Manpower Plan………………………………………………………………… ………………………297 ...

NOTES AND COMMENTS:

  • 1. PROGRAMS AND ACTIVITIES IN TECHNICAL EDUCATION AND SKILLS DEVELOPMENT UNDER THE

TESDA ACT OF 1994…297; 2. COMPREHENSIVE DEVELOPMENT PLAN FOR MIDDLE-LEVEL

MANPOWER…298; 3. DEVOLUTION OF TESDA’S TRAINING FUNCTIONS TO LOCAL GOVERNMENT

UNITS…299.

Article 47. National Manpower Skills Center…………………………………………………………………

...

……………

...

299

NOTES AND COMMENTS:

  • 1. TESDA SKILLS DEVELOPMENT CENTERS…299; 2. TECHNICAL EDUCATION AND SKILLS

DEVELOPMENT COMMITTEES…299.

Article 48. Establishment and Formulation of Skills Standards……………………………………………………………

300 ...

NOTES AND COMMENTS:

  • 1. NATIONAL STANDARDS OF TRADE SKILLS UNDER ARTICLE 48 AND ITS IMPLEMENTING

RULES…300; 2. ESTABLISHMENT AND ADMINISTRATION OF NATIONAL TRADE SKILLS STANDARDS

UNDER THE TESDA ACT OF 1994…301; 3. SKILLS DEVELOPMENT OPPORTUNITIES…301; 4. SKILLS

OLYMPICS…301

Article 49. Administration of Training Programs………………………………………………………………… …………301 ...

NOTES AND COMMENTS:

  • 1. ADMINISTRATION OF TRAINING PROGRAMS UNDER THE TESDA ACT OF 1994…302; 2. ASSISTANCE

TO EMPLOYERS AND ORGANIZATIONS…302; 3. COORDINATION OF ALL SKILLS TRAINING

SCHEMES…302; 4. TECHNICAL AND VOCATIONAL SCHOOLS AND TRAINING CENTERS…302; 5. USER-

LED OR MARKET-DRIVEN STRATEGY…303; 6. DUAL TRAINING SYSTEM ACT OF 1994…303; 7. THE

TESDA DEVELOPMENT FUND…308; 8. INSTRUCTIONAL IMPROVEMENT FUND…309; 9. SCHOLARSHIP

GRANTS…309; 10. POWER OF TESDA TO REVIEW AND RECOMMEND ACTIONS…309.

Article 50. Industry Boards…………………………………………………………………

...

…………………………………309

NOTES AND COMMENTS:

  • 1. INDUSTRY BOARDS UNDER ARTICLE 50 AND ITS IMPLEMENTING RULES…309; 2. INDUSTRY BOARDS

UNDER THE TESDA ACT OF 1994…310.

Article 51. Employment Service Training Functions………………………………………………………………… …… 310

...

..

NOTES AND COMMENTS:

  • 1. EMPLOYMENT PROMOTION SCHEME…310; 2. STUDIES AND RESEARCH…310; 3. RESEARCH AND

CONTINUOUS ASSESSMENT AND STUDIES…311; 4. EVALUATION…311.

Article 52. Incentive Scheme………………………………………………………………… ……………………………… 311

...

..

NOTES AND COMMENTS:

  • 1. INCENTIVE SCHEME UNDER ARTICLE 52 AND ITS IMPLEMENTING RULES…311; 2. INCENTIVE

SCHEMES UNDER THE TESDA ACT OF 1994…312; 3. LABOR TRAINING EXPENSES AS INCOME TAX

DEDUCTION…312; 4. DEDUCTIBILITY OF LABOR TRAINING COSTS FOR APPRENTICES…314.

Article 53. Council Secretariat………………………………………………………………… …………………………… 314

...

...

NOTES AND COMMENTS:

  • 1. THE TESDA SECRETARIAT…315; 2. THE DIRECTOR-GENERAL…316; 3. THE DEPUTY DIRECTORS-

GENERAL…316; 4. THE CHIEF OF SERVICES FOR ADMINISTRATION…316; 5. STRUCTURAL

ORGANIZATION AND PERSONNEL…316.

Article 54. Regional Manpower Development Offices………………………………………………………………… …….317 ...

NOTES AND COMMENTS:

  • 1. TESDA REGIONAL OFFICES UNDER THE TESDA ACT OF 1994…317; 2. TESDA PROVINCIAL

OFFICES…317.

Article 55. Consultants and Technical Assistance, Publication and Research………………………………………………318

NOTES AND COMMENTS:

  • 1. CONSULTANTS AND TECHNICAL ASSISTANCE, PUBLICATION AND RESEARCH…318.

Article 56. Rules and Regulations………………………………………………………………… ………………………….318 ...

NOTES AND COMMENTS:

  • 1. RULE-MAKING POWER OF TESDA…318; 2. REVIEW OF THE PERFORMANCE OF TESDA…318.

Title II……………………… ……………………………………………… ……………………………………………………… 319

..

.. ...

TRAINING AND EMPLOYMENT OF SPECIAL WORKERS……… ……………………………………………………… 319

..

...

Chapter I………………………………………………………………… …………………………………………………… 319

.............

..

APPRENTICES……………………………………………………………………… …………………………………………… 319

.....

..

Article 57. Statement of Objectives………………………………………………………………… …………………………319 ...

NOTES AND COMMENTS:

  • 1. SPECIAL WORKERS…319; 2. OBJECTIVES OF APPRENTICESHIP PROGRAMS…319; 3. GOVERNING

LAWS…320; 4. APPRENTICESHIP PROGRAM TO BE IMPLEMENTED AND ADMINISTERED BY

TESDA

...

320;

5. OFFICE OF APPRENTICESHIP CREATED UNDER THE TESDA ACT OF 1994…320; 6.

x

REVISED GUIDELINES IN THE IMPLEMENTATION OF APPRENTICESHIP AND LEARNERSHIP

PROGRAMS…320.

Article 58. Definition of Terms………………………………………………………………… …………………………… 321

...

..

NOTES AND COMMENTS:

  • 1. DEFINITIONS UNDER VARIOUS LAWS AND ISSUANCES…321; 2. APPRENTICESHIP, DEFINED…321; 3.

APPRENTICE, DEFINED…321; 4. APPRENTICIABLE OCCUPATION, DEFINED…322; 5. APPRENTICESHIP

AGREEMENT…322.

Article 59. Qualifications of an Apprentice………………………………………………………………… ……………… 322

...

..

NOTES AND COMMENTS:

  • 1. QUALIFICATIONS OF APPRENTICES…322; 2. CONFLICT IN THE AGE REQUIREMENT…323; 3.

VALIDITY OF THE IMPOSITION OF ADDITIONAL REQUIREMENT ON PHYSICAL FITNESS UNDER THE

IMPLEMENTING RULES…323; 4. CERTIFICATE OF COMPLETION OF APPRENTICESHIP…324; 5.

CERTIFICATE, EVIDENCE OF SKILLS…324.

Article 60. Employment of Apprentices………………………………………………………………… ……………………324 ...

NOTES AND COMMENTS:

  • 1. WHO MAY ESTABLISH APPRENTICESHIP PROGRAMS…324; 2. HIGHLY TECHNICAL

INDUSTRIES…324; 3. APPRENTICEABLE TRADES AND OCCUPATIONS…324; 4. NUMBER OF

APPRENTICES TO BE TAKEN IN BY COMPANIES…325; 5. REGISTRATION OF APPRENTICESHIP

PROGRAM…325; 6. REGISTRATION PROCESS FOR APPRENTICESHIP PROGRAMS INVOLVING

OCCUPATIONS ALREADY APPROVED AS APPRENTICIABLE…325; 7. REGISTRATION PROCESS FOR

APPRENTICESHIP PROGRAMS INVOLVING OCCUPATIONS NOT YET APPROVED AS

APPRENTICIABLE…325; 8. APPROVAL OF APPRENTICIABLE OCCUPATIONS…326; 9. POST-

REGISTRATION CONCERNS…326; 10. SANCTIONS…327.

Article 61. Contents of Apprenticeship Agreements………………………………………………………………… ………327 ...

NOTES AND COMMENTS:

  • 1. REQUIRED CONTENTS OF APPRENTICESHIP AGREEMENTS…327; 2. NO VALID APPRENTICESHIP

TRAINING IN THE ABSENCE OF AN APPRENTICESHIP AGREEMENT…327; 3. TESDA APPROVAL OF

APPRENTICESHIP AGREEMENT, INDISPENSABLE FOR ITS VALIDITY…328; 4. APPRENTICESHIP

PERIOD…329; 5. OPTION TO EMPLOY APPRENTICE…330; 6. RULE IN CASE OF PROBATIONARY

EMPLOYMENT WHERE THE JOB IS COVERED BY AN APPRENTICESHIP AGREEMENT…330; 7. HOURS

OF WORK OF APPRENTICES…330; 8. WAGE RATE OF APPRENTICES…331; 9. MODEL APPRENTICESHIP

STANDARDS…331.

Article 62. Signing of Apprenticeship Agreement………………………………………………………………… …………332 ...

NOTES AND COMMENTS:

  • 1. PARTIES REQUIRED TO SIGN THE APPRENTICESHIP AGREEMENT…332; 2. COPIES OF AGREEMENT

TO BE FURNISHED TESDA…332; 3. CREATION OF TRIPARTITE PLANT APPRENTICESHIP

COMMITTEE…332; 4. NON-TRIPARTITE APPRENTICESHIP COMMITTEES…333; 5. CREATION OF AN AD

HOC ADVISORY COMMITTEE…333; 6. DUTIES OF APPRENTICESHIP COMMITTEES…333; 7.

CERTIFICATE OF MERITORIOUS SERVICE ISSUED TO APPRENTICESHIP COMMITTEES…333.

Article 63. Venue of Apprenticeship Programs………………………………………………………………… ……………333 ...

NOTES AND COMMENTS:

  • 1. APPRENTICESHIP SCHEMES…334; 2. USE OF TESDA TRAINING CENTERS…334; 3. PRIORITY IN THE

USE OF TRAINING CENTERS…334.

Article 64. Sponsoring of Apprenticeship Program…………………………………………………………………………334

NOTES AND COMMENTS:

  • 1. HOW APPRENTICESHIP PROGRAM MAY BE UNDERTAKEN…334; 2. VENUES OF ON-THE-JOB

TRAINING…335; 3. EXPLICIT DESCRIPTION OF ON-THE-JOB TRAINING…335.

Article 65. Investigation of Violation of Apprenticeship Agreement…………………………………………………………335

NOTES AND COMMENTS:

  • 1. INITIATION OF INVESTIGATION FOR VIOLATION OF APPRENTICESHIP AGREEMENT…335; 2. WHO

MAY TERMINATE THE APPRENTICESHIP AGREEMENT…335; 3. VALID CAUSES FOR TERMINATION BY

EMPLOYER…335; 4. VALID CAUSES FOR TERMINATION BY APPRENTICE…336; 5. PROCEDURE IN THE

TERMINATION OF APPRENTICESHIP…336.

Article 66. Appeal to the Secretary of Labor and Employment……………………………………………………………….336

Article 67.

Exhaustion of Administrative Remedies………………………………………………………………… ………336 ...

NOTES AND COMMENTS:

  • 1. RATIONALE BEHIND THE DOCRINE OF EXHAUSTION OF ADMINISTRATIVE REMEDIES…336; 2.

ADMINISTRATIVE REMEDIES REFERRED TO IN ARTICLE 67…337; 3. EXCEPTIONS TO THE RULE ON

EXHAUSTION OF ADMINISTRATIVE REMEDIES…337; 4. JUDICIAL REVIEW OF DECISIONS OF THE

DOLE SECRETARY…339.

Article 68. Aptitude Testing of Applicants………………………………………………………………… …………………339 ...

NOTES AND COMMENTS:

  • 1. APTITUDE TESTS…339; 2. COMPETENCY-BASED SYSTEM IN APPRENTICESHIP…339.

Article 69. Responsibility for Theoretical Instruction………………………………………………………………… …….340 ...

NOTES AND COMMENTS:

  • 1. RELATED THEORETICAL INSTRUCTIONS, DEFINED…340; 2. ON-THE-JOB TRAINING, DEFINED…340;

  • 3. THEORETICAL INSTRUCTIONS BY EMPLOYER…340; 4. RATIO OF THEORETICAL INSTRUCTIONS

AND ON-THE-JOB TRAINING…340; 5. PREVIOUS TRAINING OR EXPERIENCE, WHEN CREDITED…340.

Article 70. Voluntary Organization of Apprenticeship Programs; Exemptions……………………………………………

...

341

xi

NOTES AND COMMENTS:

  • 1. GENERAL RULE…341; 2. EXCEPTIONS…341.

Article 71. Deductibility of Training Costs………………………………………………………………… ………….…… 341

...

..

NOTES AND COMMENTS:

  • 1. DEDUCTIBILITY OF COST OF TRAINING THE APPRENTICES; REQUISITES…341; 2. CERTIFICATION

FROM DOLE…342.

Article 72. Apprentices Without Compensation…………………………………………………………………

...

…….……

..

342

NOTES AND COMMENTS:

  • 1. APPRENTICES WITHOUT COMPENSATION…341; 2. LEGAL APPRENTICESHIP OR INTERNSHIP…342; 3.

PLACEMENT OF CADETS/APPRENTICES UNDER THE JOB CORPS PROGRAM…343.

Chapter II………………………………………………… …………………… ……………………………………………………344

..

...

LEARNERS…………………………………………………… ………………… …………………………………………………344

..

...

Article 73. Learners, Defined………………………………………………………………………………………………

....

344

NOTES AND COMMENTS:

  • 1. LEARNERSHIP, DEFINED…344; 2. LEARNER, DEFINED…344; 3. LEARNERSHIP AGREEMENT,

DEFINED…344; 4. GOVERNING LAWS…344; 5. LEARNABLE OCCUPATIONS…344; 6. REGISTRATION OF

LEARNERSHIP PROGRAM…344; 7. REGISTRATION PROCESS FOR LEARNERSHIP PROGRAMS

INVOLVING OCCUPATIONS ALREADY APPROVED AS LEARNABLE…345; 8. REGISTRATION PROCESS

FOR LEARNERSHIP PROGRAMS INVOLVING OCCUPATIONS NOT YET APPROVED AS

LEARNABLE…345; 9. APPROVAL OF LEARNABLE OCCUPATIONS…346; 10. POST-REGISTRATION

CONCERNS…346; 11. SANCTIONS…346.

Article 74. When Learners May Be Hired…………………………………………………………………

…………………347 ...

NOTES AND COMMENTS:

  • 1. CIRCUMSTANCES THAT JUSTIFY THE HIRING OF LEARNERS…347; 2. LEARNABLE TRADES…347; 3.

COMPETENCY-BASED SYSTEM IN LEARNERSHIP PROGRAMS…347; 4. MAXIMUM NUMBER OF

LEARNERS THAT COMPANIES MAY TAKE IN…348.

Article 75. Learnership Agreement………………………………………………………………… ……………………… 348

...

...

NOTES AND COMMENTS:

  • 1. CONTENTS OF LEARNERSHIP AGREEMENT…348; 2. PARTIES TO A LEARNERSHIP AGREEMENT…348;

  • 3. NO VALID LEARNERSHIP IN THE ABSENCE OF A LEARNERSHIP AGREEMENT…349; 4. PERIOD OF

LEARNERSHIP…349; 5. OBLIGATION TO HIRE AS EMPLOYEE AFTER LEARNERSHIP PERIOD…349; 6.

EMPLOYMENT OF MINORS AS LEARNERS…349; 7. PROBATIONARY PERIOD IN LEARNABLE JOBS…349;

  • 8. WAGE RATE OF LEARNERS…349; 9. INCENTIVES TO COMPANIES PARTICIPATING IN LEARNERSHIP

PROGRAMS…350; 10. CANCELLATION OF LEARNERSHIP PROGRAMS…350; 11. SETTLEMENT OF

DISPUTES INVOLVING VIOLATION OF A LEARNERSHIP AGREEMENT…350.

Article 76. Learners in Piecework………………………………………………………………… ………………………….350 ...

NOTES AND COMMENTS:

  • 1. SPECIAL RULE FOR LEARNERS IN PIECEWORK…351.

Article 77. Penalty Clause………………………………………………………………… ………………………………… 351

...

..

NOTES AND COMMENTS:

  • 1. GENERAL PENALTY CLAUSE…351; 2. PENALTIES ARE PENAL IN NATURE…351.

Chapter III………………………………………………………………… …………………………………………………………352 ...

HANDICAPPED WORKERS……………………………………………………………………………………………………… 352 ...

Article 78. Definition………………………………………………………………… ……………………………………… 352

...

..

NOTES AND COMMENTS:

  • 1. DEFINITION UNDER ARTICLE 78…352; 2. DEFINITION UNDER R.A. NO. 6640…352; 3. DEFINITION

UNDER R.A. NO. 7277…352; 4. CHANGE IN NOMENCLATURE IN R.A. NO. 7277, AS AMENDED BY R.A. NO.

9442…353.

Article 79. When Employable………………………………………………………………… ………………………………353 ...

NOTES AND COMMENTS:

  • 1. JUSTIFICATION FOR EMPLOYMENT OF HANDICAPPED WORKERS…353; 2. JUSTIFICATION FOR

EMPLOYMENT OF PERSONS WITH DISABILITY…353; 3. INCENTIVES FOR EMPLOYERS WHO EMPLOY

PERSONS WITH DISABILITY…354; 4. DISCRIMINATION ON EMPLOYMENT OF PERSONS WITH

DISABILITY…355.

Article 80. Employment Agreement………………………………………………………………… ………………………

...

...

356

NOTES AND COMMENTS:

  • 1. EMPLOYMENT AGREEMENT…356; 2. CONTENTS OF EMPLOYMENT AGREEMENT…356; 3. WAGE

RATE OF HANDICAPPED WORKERS OR PERSONS WITH DISABILITY NO LONGER 75% OF MINIMUM

WAGE BUT FULL AMOUNT THEREOF…357; 4. INSPECTION OF AGREEMENT BY THE SECRETARY OF

LABOR AND EMPLOYMENT…357; 5. COPY OF AGREEMENT TO BE FURNISHED TO DOLE…357.

Article 81. Eligibility for Apprenticeship………………………………………………………………… ………………… 357

...

..

NOTES AND COMMENTS:

  • 1. ELIGIBILITY OF HANDICAPPED WORKERS OR PERSONS WITH DISABILITY FOR APPRENTICESHIP

AND LEARNERSHIP…358; 2. WAGE RATE OF HANDICAPPED WORKERS OR PERSONS WITH DISABILITY

WHO ARE HIRED AS APPRENTICES OR LEARNERS…358.

BOOK THREE

CONDITIONS OF EMPLOYMENT

Title I………………………………………………………………… ……………………………………………………………… 359

...

..

WORKING CONDITIONS AND REST PERIODS………………………………………………………………… ……… 359

...

.......

xii

Chapter I…………………………………………………………………

...

……………………………………………………….…

...

359

HOURS OF WORK…………………………………………………………………

...

……………………………………………….359

Article 82. Coverage………………………………………………………………… ……………………………………… 359

...

....

NOTES AND COMMENTS:

  • 1. LABOR STANDARDS…359; 2. EMPLOYEES COVERED…359; 3. EMPLOYEES NOT COVERED…360; 4.

SPECIFIC PROVISIONS REFERRED TO UNDER THE EXCLUSIONARY CLAUSE IN ARTICLE 82…371.

Article 83. Normal Hours of Work………………………………………………………………… ………………………

...

....

372

NOTES AND COMMENTS:

  • 1. MANAGEMENT RIGHTS AND PREROGATIVES…372; 2. PREROGATIVE TO CHANGE WORKING

HOURS…373; 3. NORMAL HOURS OF WORK OF EMPLOYEES…375; 4. WORK DAY, HOW

RECKONED…375; 5. WORK WEEK; HOW RECKONED…376; 6. REDUCTION OF EIGHT-HOUR WORKING

DAY…376; 7. COMPRESSED WORKWEEK (CWW)…376; 8. BROKEN HOURS…381; 9. STAGGERED

WORKING TIME…381; 10. WORK IN DIFFERENT SHIFTS…382; 11. REDUCTION OF WORKDAYS ON

ACCOUNT OF LOSSES…383; 12. FLEXIBLE WORK SCHEDULE UNDER R.A. NO. 8972…383; 13. FLEXIBLE

WORK ARRANGEMENTS DURING ECONOMIC DIFFICULTIES AND NATIONAL EMERGENCIES…383; 14.

HOURS OF WORK OF PART-TIME WORKERS…384; 15. HOURS OF WORK OF HOSPITAL AND CLINIC

PERSONNEL…385; 16. HOURS OF WORK OF PUBLIC HEALTH WORKERS…388.

Article 84. Hours Worked………………………………………………………………… ………………………………… 389

...

...

NOTES AND COMMENTS:

  • 1. COMPENSABLE HOURS WORKED…389; 2. PRINCIPLES IN DETERMINING HOURS WORKED…389; 3.

COFFEE BREAKS AND REST PERIOD OF SHORT DURATION…390; 4. WAITING TIME…390; 5. SLEEPING,

WHEN CONSIDERED COMPENSABLE…390; 6. WORKING WHILE ON CALL…390; 7. TRAVEL TIME…391;

  • 8. PRELIMINARY AND POSTLIMINARY ACTIVITIES…391; 9. ATTENDANCE IN LECTURES, MEETINGS

AND TRAINING PROGRAMS…391; 10. ATTENDANCE IN CBA NEGOTIATIONS…392; 11. ATTENDANCE IN

GRIEVANCE MEETINGS…392; 12. ATTENDANCE IN HEARINGS OR CONFERENCES IN CASES FILED BY

EMPLOYEES AGAINST EMPLOYER…392; 13. ATTENDANCE OR PARTICIPATION IN STRIKES OR

PICKETS…393; 14. WORKING TIME OF SEAMEN OR SEAFARERS…393; 15. SEMESTRAL BREAK OF

TEACHERS…394; 16. EFFECTS OF POWER INTERRUPTIONS OR BROWN-OUTS…395; 17. WORK

SUSPENSION DUE TO PEACE AND ORDER DISTURBANCE…395.

Article 85. Meal Periods………………………………………………………………… …………………………………….396 ...

NOTES AND COMMENTS:

  • 1. GENERAL RULE ON MEAL PERIOD…396; 2. SHORTENING OF MEAL TIME TO NOT LESS THAN 20

MINUTES; WHEN COMPENSABLE…396; 3. SHORTENING OF MEAL TIME TO NOT LESS THAN 20

MINUTES, WHEN NOT COMPENSABLE…396; 4. SHORTENING OF MEAL TIME TO LESS THAN 20

MINUTES; EFFECT…397; 5. CHANGING FROM 30-MINUTE PAID “ON CALL” LUNCH BREAK TO 1 HOUR

MEAL TIME WITHOUT PAY, EFFECT…397; 6. MEAL TIME INVOLVING SEVERAL SHIFTS…398.

Article 86. Night Shift Differential………………………………………………………………… …………………………398 ...

NOTES AND COMMENTS:

  • 1. RATIONALE FOR ADDITIONAL COMPENSATION FOR NIGHT SHIFT WORK…398; 2. EMPLOYEES NOT

COVERED…398; 3. PERCENTAGE OF NIGHT SHIFT DIFFERENTIAL PAY…399; 4. ADDITIONAL

COMPENSATION FOR WORK PERFORMED DURING NIGHT SHIFT…399; 5. NIGHT SHIFT DIFFERENTIAL

PAY AND OVERTIME PAY; DISTINGUISHED…399; 6. ADDITIONAL COMPENSATION FOR WORK ON

SCHEDULED REST DAY OR SPECIAL DAY…399; 7. ADDITIONAL COMPENSATION FOR WORK ON

REGULAR HOLIDAYS…399; 8. COMPUTATION OF NIGHT SHIFT DIFFERENTIAL PAY…399; 9.

ILLUSTRATIONS…400; 10. RELATION OF NIGHT SHIFT DIFFERENTIAL PAY BENEFIT PROVIDED

UNDER THE LABOR CODE TO EXISTING INDIVIDUAL OR COLLECTIVE BARGAINING AGREEMENTS

OR COMPANY PRACTICE OR POLICY…402.

Article 87. Overtime Work………………………………………………………………… ………………………………… 403

...

..

NOTES AND COMMENTS:

  • 1. OVERTIME WORK REFERS TO WORK RENDERED AFTER NORMAL EIGHT (8) HOURS OF WORK…404;

  • 2. ADDITIONAL COMPENSATION FOR OVERTIME WORK ON ORDINARY WORKING DAYS…404; 3.

MEANING OF REGULAR WAGE OR BASIC SALARY FOR PURPOSES OF COMPUTING OVERTIME

PAY…404; 4. PERMISSION BY THE EMPLOYER FOR THE EMPLOYEE TO RENDER OVERTIME WORK

NECESSARY TO BE ENTITLED TO OVERTIME PAY…405; 5. PREMIUM PAY AND OVERTIME PAY;

DISTINGUISHED…405; 6. RATIONALE FOR THE PAYMENT OF HIGHER RATE IN CASE OF OVERTIME

WORK OR WORK ON REST DAYS AND HOLIDAYS…406; 7. PREMIUM PAY AND OVERTIME PAY FOR

HOLIDAY AND REST DAY WORK…406; 8. ILLUSTRATIONS…407; 9. TEACHING OVERLOAD AND

OVERTIME WORK IN PRIVATE SCHOOLS…408; 10. VALIDITY OF STIPULATED OVERTIME RATES…409;

11. BUILT-IN OVERTIME PAY…409; 12. ENTITLEMENT OF SEAFARERS TO OVERTIME PAY…409; 13.

OVERTIME WORK MUST BE DULY PROVED…411; 14. EFFECT OF JUDICIAL ADMISSION BY EMPLOYER

OF OVERTIME WORK…411; 15. PAYMENT OF OVERTIME PAY CANNOT CAUSE WAGE

DISTORTION…412; 16. PAYMENT OF OVERTIME PAY CANNOT AMOUNT TO UNJUST

ENRICHMENT…412; 17. EFFECT OF PAYMENT OF OVERTIME PAY TO EMPLOYEES NOT ENTITLED

THERETO…412; 18. WAIVER OF OVERTIME PAY…412; 19. EFFECT OF LACHES OR ESTOPPEL ON

CLAIMS FOR OVERTIME PAY…413.

Article 88. Undertime Not Offset by Overtime………………………………………………………………… …………… 413

...

..

NOTES AND COMMENTS:

  • 1. SITUATIONS CONTEMPLATED UNDER ARTICLE 88…413; 2. MEANING OF UNDERTIME WORK…414; 3.

RULE ON LEAVE OF ABSENCE UNDER ARTICLE 88…414.

xiii

Article 89. Emergency Overtime Work…………………………………………………………………

…………………….415 ...

NOTES AND COMMENTS:

1.

1.

Chapter II………

..

WEEKLY REST

1.

1.

1.

1.

1.

COMPULSORY OVERTIME WORK…415; 2. EMERGENCY OVERTIME WORK UNDER THE

IMPLEMENTING RULES…416; 3. THE GENERAL RULE REMAINS THAT NO EMPLOYEE MAY BE

COMPELLED TO RENDER OVERTIME WORK AGAINST HIS WILL…416; 4. RULE WHEN EMPLOYEE

REFUSES TO RENDER EMERGENCY OVERTIME WORK…416; 5. OVERTIME BOYCOTT AS A FORM OF

ILLEGAL STRIKE…417.

Article 90. Computation of Additional Compensation………………………………………………………………… …….417 ...

NOTES AND COMMENTS:

MEANING OF “REGULAR WAGE” AS BASIS IN THE COMPUTATION OF OVERTIME PAY AND OTHER

ADDITIONAL REMUNERATIONS…417; 2. NON-DIMINUTION OF BENEFITS, SUPPLEMENTS OR

PAYMENTS…417.

……………………………………………………………… ……………………………………………………418

...

PERIODS………………………………………………………………… …………………………………… 418

...

...

Article 91. Right to Weekly Rest Day………………………………………………………………… ………………………418 ...

NOTES AND COMMENTS:

RATIONALE BEHIND THE RULE ON REST DAY…418; 2. COVERAGE OF ARTICLE 91…418; 3. BUSINESS

ON SUNDAYS AND HOLIDAYS…418; 4. WEEKLY REST DAY…419; 5. EMPLOYEE’S PREFERENCE OF REST

DAY BASED ON RELIGIOUS GROUNDS…419; 6. SCHEDULE OF REST DAY…419; 7. INVALIDITY OF

WAIVER OF COMPENSATION FOR WORK ON REST DAYS AND HOLIDAYS…419; 8. MAY REST DAY

...

419.

420 ....

WORK BE OFFSET BY WORK ON REGULAR WORKDAYS?

Article 92. When Employer May Require Work on a Rest Day………………………………………………….…………

NOTES AND COMMENTS:

COMPULSORY WORK ON SCHEDULED REST DAY…420; 2. OBSERVATIONS ON ARTICLE 92 VIS-À-VIS

ITS IMPLEMENTING RULE…421; 3. EXCLUSIVE CHARACTER OF THE ENUMERATION IN ARTICLE 92

AND ITS IMPLEMENTING RULES…421.

Article 93. Compensation for Rest Day, Sunday or Holiday Work……………………………………………….………… 421 ..

NOTES AND COMMENTS:

EMPLOYEES NOT COVERED…422; 2. ADDITIONAL COMPENSATION FOR WORK ON REST DAY OR

SUNDAY OR HOLIDAY…422; 3. ILLUSTRATIONS…423; 4. PAID-OFF DAYS…423; 5. RELATION OF THE

LAW ON REST DAY TO EMPLOYMENT AGREEMENTS…423.

Chapter III………………………………………………………………… …………………………………………………………424 ...

HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES………………………………………………….424

Article 94. Right to Holiday Pay………………………………………………………………… ……………………………424 ...

NOTES AND COMMENTS:

LAWS AMENDING ARTICLE 94…424; 2. GENERAL ELECTIONS…429; 3. NINOY AQUINO DAY [R.A. NO.

9236]…429; 4. NATIONAL WOMEN’S DAY – A WORKING SPECIAL HOLIDAY…429; 5. OTHER HOLIDAYS

DECLARED UNDER PRESIDENTIAL PROCLAMATIONS…429; 6. HOLIDAY PAY, MEANING AND

PURPOSE…430; 7. COVERAGE; EXCEPTIONS…431; 8. REGULAR HOLIDAY FALLING ON EMPLOYEE’S

REGULAR WORKDAY…431; 9. REGULAR HOLIDAY FALLING ON EMPLOYEE’S REST DAY…432; 10.

TABLE OF CONTENTS

DECLARED SPECIAL DAYS OR SPECIAL HOLIDAYS…433; 11. DECLARED SPECIAL WORKING

HOLIDAYS…434; 12. DISTINCTION IN TERMS OF PAY BETWEEN REGULAR HOLIDAYS AND SPECIAL

DAYS/SPECIAL HOLIDAYS…434; 13. RULE WHEN REGULAR HOLIDAY FALLS ON A SUNDAY…434; 14.

EFFECT OF ABSENCES ON ENTITLEMENT TO HOLIDAY PAY…435; 15. REGULAR HOLIDAY FALLING

DURING TEMPORARY OR PERIODIC SHUTDOWN AND TEMPORARY CESSATION OF WORK…436; 16.

SUCCESSIVE REGULAR HOLIDAYS…436; 17. TWO REGULAR HOLIDAYS FALLING ON THE SAME

DAY…436; 18. HOLIDAY PAY OF PRIVATE SCHOOL TEACHERS…438; 19. HOLIDAY PAY OF EMPLOYEES

PAID BY RESULTS…439; 20. HOLIDAY PAY OF FIELD PERSONNEL…440; 21. HOLIDAY PAY OF

SEASONAL WORKERS…442; 22. HOLIDAY PAY OF EMPLOYEES WITH NO REGULAR WORKING

DAYS…442; 23. DISTINCTION BETWEEN MONTHLY-PAID AND DAILY-PAID EMPLOYEES…442; 24.

MONTHLY-PAID EMPLOYEES, NOT EXCLUDED FROM THE COVERAGE OF HOLIDAY PAY…442; 25.

WHEN ENTITLEMENT TO HOLIDAY PAY OF MONTHLY-PAID EMPLOYEES SHOULD COMMENCE…444;

26. WITHDRAWAL OF HOLIDAY PAY BENEFIT, NOT ALLOWED…444; 27. EFFECT OF CBA STIPULATION

ON HOLIDAY PAY…445; 28. EFFECT OF FAILURE TO SHOW PROOF OF PAYMENT OF HOLIDAY

PAY…445; 29. OFFSETTING HOLIDAY WORK WITH WORK ON REGULAR DAYS, NOT ALLOWED…445.

...

……………….446

Article 95. Right to Service Incentive Leave…………………………………………………………………

NOTES AND COMMENTS:

EFFECTIVITY OF THE GRANT OF SERVICE INCENTIVE LEAVE BENEFIT…446; 2. RATIONALE FOR

THE LAW…446; 3. COVERAGE OF SERVICE INCENTIVE LEAVE BENEFIT; EXCEPTIONS…446; 4. RIGHT

TO SERVICE INCENTIVE LEAVE…449; 5. MEANING OF “ONE YEAR OF SERVICE.”…450; 6.

COMMUTATION TO CASH; BASIS OF COMPUTATION…450; 7. GRANT OF SERVICE INCENTIVE LEAVE

BENEFIT IN EXCESS OF THE BENEFIT PROVIDED UNDER ARTICLE 95…451; 8. RIGHT OF EMPLOYER

TO IMPOSE CONDITIONS FOR AVAILMENT OF LEAVE BENEFITS…451; 9. RIGHT OF PART-TIME

WORKERS TO SERVICE INCENTIVE LEAVE…452; 10. NO LABOR CODE PROVISION ON VACATION

LEAVE OR SICK LEAVE OR OTHER FORMS OF SIMILAR LEAVE BENEFITS

...

452;

11. EFFECT OF

FAILURE TO SHOW PROOF OF PAYMENT OF SERVICE INCENTIVE LEAVE BENEFIT…453; 12.

EMPLOYMENT RELATIONSHIP NOT SUSPENDED DURING THE PERIOD OF SERVICE INCENTIVE

LEAVE OR VACATION LEAVE WITH PAY…453; 13. OTHER FORMS OF LEAVE UNDER THE LABOR CODE

AND PERTINENT LAWS…455; 14. SERVICE INCENTIVE LEAVE AS PART OF THE RETIREMENT

xiv

BENEFITS…455; 15. RULE ON PRESCRIPTION OF CLAIM FOR SERVICE INCENTIVE LEAVE, DIFFERENT

FROM THE RULE GENERALLY APPLICABLE TO MONETARY CLAIMS…456; 16. COMPUTATION OF

SERVICE INCENTIVE LEAVE PAY OF AN ILLEGALLY DISMISSED EMPLOYEE IS NOT LIMITED TO 3

YEARS…457.

Article 96. Service Charges…………………………………………………………………

...

…………………………………458

NOTES AND COMMENTS:

  • 1. COVERAGE…458; 2. DISTRIBUTION OF SERVICE CHARGES…458; 3. FREQUENCY OF

DISTRIBUTION…459; 4. RULE IF SERVICE CHARGE IS ABOLISHED…459; 5. TIPS…459; 6. SERVICE

CHARGE IS NOT IN THE NATURE OF A PROFIT SHARE AND, THEREFORE, CANNOT BE DEDUCTED

FROM

WAGE. ..

459.

Title II………………………………………………………………… ………………………………………………………………461 ...

WAGES………………………………………………………………… …………………………………………………………….461 ...

Chapter I…………………………………………………………………

...

…………………………………………….……………

...

461

PRELIMINARY MATTERS………………………………………………………………… …………………………………….461 ...

Article 97. Definitions………………………………………………………………… ……………………………………….461 ...

NOTES AND COMMENTS:

  • 1. PERSON…462; 2. EMPLOYER AND EMPLOYEE…463; 3. AGRICULTURE…463; 4. WAGE…464.

Article 98. Application of Title………………………………………………………………… ………………………….… 473

...

..

NOTES AND COMMENTS:

  • 1. COVERAGE…473; 2. RATIONALE FOR THE LAW…474.

Chapter II………………………………………………………………… ………………………………………………………… 475

...

..

MINIMUM WAGE RATES………………………………………………………………… …………………………………… 475

...

...

Article 99. Regional Minimum Wages…………………………………………………………………… ….……………….475 ...

NOTES AND COMMENTS:

  • 1. MINIMUM WAGE; CONCEPT AND RATIONALE…475; 2. LAWS GRANTING MINIMUM WAGES AND

LIVING ALLOWANCES…476; 3. WAGE FIXING NO LONGER MADE BY LAW BUT BY WAGE ORDERS

ISSUED BY REGION THROUGH THE VARIOUS RTWPBs…479; 4. EFFECT OF THE CONCEPT OF “EQUAL

PAY FOR EQUAL WORK” ON SALARY DIFFERENCES OCCASIONED BY MANDATED WAGE

INCREASE…479; 5. EMPLOYER’S UNIFORM NATIONAL WAGE STRUCTURE IS ANTITHETICAL TO R.A.

NO. 6727…481; 6. BASIS OF MINIMUM WAGE RATES…481; 7. INTEGRATION OF MONETARY BENEFITS

INTO THE BASIC PAY…481; 8. EQUIVALENT MONTHLY STATUTORY MINIMUM WAGE RATES OF

DAILY-PAID EMPLOYEES…482; 9. FACTORS/DIVISORS IN THE COMPUTATION OF BENEFITS AND

WAGE DEDUCTIONS…483; 10. REGIONAL MINIMUM WAGE RATES…488; 11. MINIMUM WAGE RATES

OF SPECIAL GROUPS OF WORKERS…490; 12. MINIMUM WAGE RATES OF WORKERS OF

CONTRACTORS FOR CONSTRUCTION PROJECTS, SECURITY, JANITORIAL AND SIMILAR

SERVICES…491; 13. WAGE RULES AFFECTING PRIVATE EDUCATIONAL INSTITUTIONS…491; 14.

MINIMUM WAGE RATES OF WORKERS PAID BY RESULTS…501; 15. MINIMUM WAGE RATES OF

HOUSEHOLD OR DOMESTIC HELPERS AND FAMILY DRIVERS…501; 16. MINIMUM WAGE RATES OF

MOBILE AND BRANCH WORKERS…502; 17. EFFECT OF TRANSFER OF PERSONNEL FROM ONE REGION

TO ANOTHER ON APPLICABLE MINIMUM WAGE RATES…502; 18. RECKONING OF UNPAID WAGES OR

WAGE DIFFERENTIALS IN ILLEGAL DISMISSAL CASES…503; 19. EFFECT OF THE REDUCTION OF

WORKDAYS ON WAGES…503.

Article 100. Prohibition Against Elimination or Diminution of Benefits……………………………………………………503

NOTES AND COMMENTS:

  • 1. APPLICATION OF ARTICLE 100…503; 2. NON-DIMINUTION PROVISION UNDER ARTICLE 127…504; 3.

APPLICABILITY OF THE NON-ELIMINATION OR NON-DIMINUTION PRINCIPLE IN ARTICLE 100…504;

  • 4. ELIMINATION OR DIMINUTION OF BENEFITS MAY CONSTITUTE DEMOTION OR CONSTRUCTIVE

DISMISSAL…506; 5. COMPANY PRACTICE…507; 6. BONUS…514; 7. THIRTEENTH (13 th ) MONTH PAY…522;

  • 8. FOURTEENTH (14 TH ) MONTH PAY, FIFTEENTH (15 TH ) MONTH PAY AND THE LIKE…541.

Article 101.

Payment by Results………………………………………………………………… …………………… …… 541

...

... ..

NOTES AND COMMENTS:

  • 1. PAYMENT BY RESULTS; NATURE…541; 2. CATEGORIES OF WORKERS PAID BY RESULTS…542; 3.

PAYMENT BY RESULTS ACCORDING TO THE RULES TO IMPLEMENT THE LABOR CODE…542; 4.

PAYMENT BY RESULTS UNDER R.A. NO. 6640 AND ITS IMPLEMENTING RULES…543; 5. PAYMENT BY

RESULTS UNDER R.A. NO. 6727 AND ITS IMPLEMENTING RULES…544; 6. PAYMENT BY RESULTS UNDER

WAGE ORDERS ISSUED BY RTWPBs…545.

Chapter III………………………………………………………………… …………………………………………………………546 ...

PAYMENT OF WAGES………………………………………………………………… ………………………………………….546 ...

Article 102.

Forms of Payment………………………………………………………………… ………….………………….546 ...

NOTES AND COMMENTS:

  • 1. MANNER AND FORM OF PAYMENT OF WAGES…546; 2. EVIDENCE OF PAYMENT OF WAGES OR

SALARIES AND BENEFITS…546; 3. PAYMENT OF MONETARY CLAIMS; BURDEN OF PROOF…548; 4.

PAYMENT OF SALARIES OF PUBLIC HEALTH WORKERS…549; 5. PENALTY FOR VIOLATION UNDER

THE REVISED PENAL CODE…549.

Article 103. Time

of Payment………………………………………………………………… …………………… ……… 549

...

... ..

NOTES AND COMMENTS:

  • 1. TIME OF PAYMENT OF WAGES…550; 2. TIME OF PAYMENT OF WAGES TO WORKERS PAID BY

RESULTS OR ON TASK BASIS…550; 3. RULE IN CASE OF STIPULATION ON THE TIME OF PAYMENT OF

WAGES IN AN EMPLOYMENT CONTRACT OR CBA OR UNDER COMPANY POLICY OR PRACTICE…550.

xv

Article 104. Place of Payment………………………………………………………………… …………………….……… 550

...

...

NOTES AND COMMENTS:

  • 1. PLACE OF PAYMENT OF WAGES…550; 2. EXCEPTIONS…550; 3. PROHIBITION ON PAYMENT OF

WAGES IN BARS, MASSAGE CLINICS OR NIGHTCLUBS…551; 4. PAYMENT THROUGH BANKS…551; 5.

PAYMENT THROUGH AUTOMATED TELLER MACHINE (ATM)…551.

Article 105. Direct Payment of Wages…………………………………………………………………

...

……………………

...

552

NOTES AND COMMENTS:

  • 1. DIRECT PAYMENT OF WAGES…552; 2. WAGES OF DECEASED EMPLOYEE…552.

Article 106. Contractor or Subcontractor…………………………………………………………………

...

………….………554

Article 107.

Article

108.

Article

109.

Indirect Employer………………………………………………………………… …………………………… 555

...

...

Posting of Bond…………………………………………………………………

...

………………………………

..

555

Solidary Liability………………………………………………………………… ………………………………555 ...

NOTES AND COMMENTS:

  • 1. LABOR CODE PROVISIONS ON CONTRACTUALIZATION…555; 2. OTHER LAWS OR RULES

GOVERNING CONTRACTUALIZATION…556; 3. GUIDING PRINCIPLES…557; 4. COVERAGE…557; 5.

TRILATERAL RELATIONSHIP IN A CONTRACTING/SUBCONTRACTING ARRANGEMENT

...

557;

6.

PERMISSIBLE OR LEGITIMATE JOB CONTRACTING/SUBCONTRACTING ARRANGEMENT…558; 7.

LABOR-ONLY CONTRACTING…562; 8. TESTS TO DETERMINE THE EXISTENCE OF PEERMISSIBLE OR

LEGITIMATE JOB CONTRACTING/SUBCONTRACTING ARRANGEMENT…562; 9. PERFORMANCE BY A

CONTRACTUAL EMPLOYEE OF ACTIVITIES DIRECTLY RELATED TO THE MAIN BUSINESS OF THE

PRINCIPAL MAKES HIM A REGULAR EMPLOYEE OF THE PRINCIPAL…573; 10. PERFORMANCE BY A

CONTRACTUAL EMPLOYEE OF SPECIFIC SPECIAL OR TECHNICAL SERVICES MAKES THE

ARRANGEMENT A PERMISSIBLE JOB CONTRACTORSHIP/SUBCONTRACTORSHIP…575; 11.

PERFORMANCE BY A CONTRACTUAL EMPLOYEE OF WORK WITHIN OR OUTSIDE OF THE PREMISES

OF THE PRINCIPAL IS NOT MATERIAL IN DETERMINING THE PERMISSIBILITY OF THE

CONTRACTING/ SUBCONTRACTING ARRANGEMENT…576; 12. PRINCIPAL DISTINCTIONS BETWEEN

LEGITIMATE JOB CONTRACTING AND LABOR-ONLY CONTRACTING…576; 13. STIPULATION IN THE

CONTRACT ON NON-EXISTENCE OF EMPLOYMENT RELATIONSHIP BETWEEN THE PRINCIPAL AND

THE EMPLOYEES OF THE CONTRACTOR/SUBCONTRACTOR, NOT CONTROLLING…578; 14.

EMPLOYMENT RELATIONSHIP AND INDEPENDENT CONTRACTING/ SUBCONTRACTING

ARRANGEMENT, DISTINGUISHED…579; 15. EMPLOYMENT, JOINT VENTURE AND JOB CONTRACTING,

TABLE OF CONTENTS

DISTINGUISHED…590; 16. PLACEMENT ACTIVITIES UNDER ARTICLES 25 TO 39 OF THE LABOR CODE

DISTINGUISHED FROM JOB CONTRACTING/ SUBCONTRACTING ARRANGEMENT…590; 17.

CONTRACTING ACTIVITIES IN THE CONSTRUCTION INDUSTRY…591; 18. GOVERNMENT AS

CONTRACTOR…592; 19. COOPERATIVES AS CONTRACTORS…592; 20. EMPLOYMENT AND WORKING

CONDITIONS OF SECURITY GUARDS AND SIMILAR PERSONNEL IN THE PRIVATE SECURITY

INDUSTRY…594; 21. PRINCIPAL AS DIRECT OR INDIRECT EMPLOYER…601; 22. LIABILITY OF

PRINCIPAL IN GENERAL…603; 23. JUDICIAL NOTICE OF VALIDITY OF JOB

CONTRACTING/SUBCONTRACTING ARRANGEMENT…619; 24. WHEN CONTRACTING OUT OF JOB,

WORK OR SERVICE CONSTITUTES AN UNFAIR LABOR PRACTICE…619; 25. TERMINATION OF

EMPLOYMENT OF CONTRACTUAL EMPLOYEES UNDER A LEGITIMATE

CONTRACTING/SUBCONTRACTING ARRANGEMENT…620; 26. TERMINATION OF EMPLOYMENT OF

CONTRACTUAL EMPLOYEES UNDER A LABOR-ONLY CONTRACTING ARRANGEMENT…622; 27.

BURDEN TO PROVE EXISTENCE OF LEGITIMATE CONTRACTING/SUBCONTRACTING

ARRANGEMENT…624; 28. POSTING OF BOND BY THE LEGITIMATE

CONTRACTOR/SUBCONTRACTOR…625; 29. REGISTRATION OF

CONTRACTORS/SUBCONTRACTORS…626; 30. ANNUAL REPORTING OF REGISTERED

CONTRACTORS/SUBCONTRACTORS…628; 31. DELISTING OF CONTRACTORS/SUBCONTRACTORS…628;

32. ENFORCEMENT OF LABOR STANDARDS AND WORKING CONDITIONS…629.

Article 110. Worker Preference in Case of Bankruptcy……………………………………………………………………….629

NOTES AND COMMENTS:

  • 1. WORKERS PREFERENCE IN CASE OF BANKRUPTCY…629; 2. EFFECT OF SUSPENSION OF PAYMENT

OF DEBTS (REHABILITATION RECEIVERSHIP) ON WORKERS’ PREFERENCE IN CASE OF BANKRUPTCY

OR LIQUIDATION…637.

Article 111. Attorney’s Fees………………………………………………………………… ………………………….…… 642

...

..

NOTES AND COMMENTS:

  • 1. ARTICLE 111 AND ARTICLE 222; DISTINGUISHED…642; 2. TWO (2) CONCEPTS OF ATTORNEY’S

FEES…643; 3. 10% ATTORNEY’S FEES646; 4. CLAIM FOR ATTORNEY’S EEES, WHERE ASSERTED…649;

  • 5. ATTORNEY’S FEES IN EXCESS OF 10% UNLAWFUL…650; 6. JUDICIAL CONTROL OF ATTORNEY’S

FEES…650; 7. PRINCIPLE OF QUANTUM MERUIT…651; 8. NON-LAWYERS ARE NOT ENTITLED TO

ATTORNEY’S FEES…653; 9. UNION SERVICE FEES…653; 10. ATTORNEY’S FEES DISALLOWED IN CASE

PARTY IS REPRESENTED BY PAO LAWYERS…655; 11. PROHIBITION AGAINST DEDUCTION FOR

ATTORNEY’S FEES IN EMPLOYEES’ COMPENSATION CASES…655; 12. RETAINER FEES…657; 13.

CONTINGENCY FEE ARRANGEMENT…657; 14. ATTORNEY’S FEES AND MORAL DAMAGES…657; 15.

PENALTY FOR VIOLATION OF ARTICLE 111…657.

Chapter IV…….………………………………………………………………… ………………………………………………… 658

...

...

PROHIBITIONS

REGARDING WAGES…………………………………………………………………… ………………… 658

...

...

Article 112. Non-Interference in Disposal of Wages………………………………………………………………………… 658 ..

xvi

NOTES AND COMMENTS:

  • 1. NON-INTERFERENCE BY EMPLOYER IN THE DISPOSAL BY EMPLOYEES OF THEIR WAGES…658; 2.

WAGES NOT SUBJECT TO EXECUTION OR ATTACHMENT; EXCEPTION…658; 3. PENALTY FOR

VIOLATION OF ARTICLE 112…658; 4. PENALTY UNDER THE REVISED PENAL CODE…658; 5. CRIMINAL

PROSECUTION FOR VIOLATION OF THE PENAL PROVISIONS OF THE LABOR CODE ON WAGES, HOW

INITIATED…658.

Article 113. Wage Deduction

....

…………………………………………………………………

……………………….……660 ...

NOTES AND COMMENTS:

  • 1. GENERAL RULE…661; 2. PERMISSIBLE DEDUCTIONS FROM WAGES UNDER THE LABOR CODE AND

OTHER LAWS…661; 3. SET-OFF OF DEBT DUE TO THE EMPLOYER AGAINST THE EMPLOYEE’S

MONETARY CLAIMS…662; 4. DEDUCTIONS DUE TO TARDINESS OR ABSENCES…663; 5. DEDUCTIONS

FROM 13 TH MONTH PAY…663; 6. DEDUCTIONS FROM SALARIES OF PUBLIC HEALTH WORKERS…663; 7.

DEDUCTIONS DUE TO LOSSES ON ACCOUNT OF ALLEGED NEGLIGENCE…664; 8. DEDUCTIONS DUE TO

ERROR IN THE AUTOMATED PAYROLL SYSTEM…664; 9. DEDUCTIONS WHICH, EVEN IF AGREED TO

BY THE EMPLOYEE, WERE HELD TO BE ILLEGAL AND INEQUITOUS AND, THEREFORE, NULL AND

VOID…664; 10. PENALTY FOR VIOLATION OF ARTICLE 113…665.

Article 114. Deposits for Loss or Damage…………………………………………………………………

…………………665 ...

NOTES AND COMMENTS:

  • 1. PROHIBITION AGAINST DEPOSIT REQUIREMENT…665; 2. PERMISSIBLE DEDUCTIONS FOR LOSS OR

DAMAGES…665; 3. PENALTY FOR VIOLATION OF ARTICLE 114…665.

Article 115. Limitations………………………………………………………………… ……………………………….…….666 ...

NOTES AND COMMENTS:

  • 1. DUE PROCESS REQUIRED BEFORE DEDUCTION FROM DEPOSITS MAY BE VALIDLY MADE….666; 2.

PRE-REQUISITES BEFORE DEDUCTION MAY BE MADE VALIDLY…666.

Article 116. Withholding of Wages and Kickbacks Prohibited………………………………………………………….…….666

NOTES AND COMMENTS:

  • 1. PROHIBITION ON WITHHOLDING OF WAGES…666; 2. KICKBACKS…667; 3. PENALTY FOR

VIOLATION OF ARTICLE 116…667.

Article 117. Deduction to Ensure Employment………………………………………………………………… ……………667 ...

NOTES AND COMMENTS:

  • 1. PROHIBITION AGAINST DEDUCTION TO ENSURE EMPLOYMENT…667; 2. PENALTY FOR VIOLATION

OF ARTICLE 117…667.

Article 118. Retaliatory Measures………………………………………………………………… ………………………….667 ...

NOTES AND COMMENTS:

  • 1. RETALIATORY ACTIONS BY EMPLOYER…667; 2. WHEN THE RETALIATORY ACT IS CONSIDERED

UNFAIR LABOR PRACTICE…668; 3. PENALTY FOR VIOLATION OF ARTICLE 118…668

Article 119. False Reporting…………………………………………………………………

...

……………………………… 668 ..

NOTES AND COMMENTS:

  • 1. FALSE STATEMENT, REPORT OR RECORD…668; 2. PENALTY FOR VIOLATION OF ARTICLE 119…669.

Chapter V………………………………………………………………… …………………………… …………………………

.. ...

670 ...

WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION……………………………………………….670

Article 120. Creation of National Wages and Productivity Commission…………………………………………………… 670 ..

NOTES AND COMMENTS:

  • 1. R.A. NO. 6727 [WAGE RATIONALIZATION ACT]…670; 2. DECLARED POLICY…670; 3. ABOLITION OF

THE NATIONAL WAGES COUNCIL (NWC) AND NATIONAL PRODUCTIVITY COMMISSION (NPC)…671; 4.

HEADQUARTERS OF THE NWPC…671; 5. RELATION TO DOLE…671.

Article 121. Powers and Functions of the Commission…………………………………………………………………

671 ..........

NOTES AND COMMENTS:

  • 1. POWERS AND FUNCTIONS…672; 2. PRIMARY JURISDICITION OF NWPC…673; 3. RULE-MAKING

POWER AND POWER OF REVIEW OF THE NWPC…673; 4. POWER OF COMMISSION CHAIRMAN TO

ORGANIZE AND APPOINT PERSONNEL…674; 5. COMPOSITION OF THE COMMISSION…674; 6.

COMPENSATION AND RANK OF SECTORAL REPRESENTATIVES…675; 7. COMMISSION

SECRETARIAT…675.

Article 122. Creation of Regional Tripartite Wages and Productivity Boards……………………………………………….675

NOTES AND COMMENTS:

  • 1. REGIONAL BOARDS; RATIONALE FOR THEIR CREATION…676; 2. COMPOSITION…676; 3. REGIONAL

BOARD SECRETARIAT…677; 4. POWERS AND FUNCTIONS…677; 5. NATURE OF THE POWER OF RTWPBs

TO ISSUE WAGE ORDERS…677; 6. IMPLEMENTATION OF PLANS, PROGRAMS AND PROJECTS OF

RTWPBs

...

677;

7. POLICY DIRECTIONS AND PROGRAM THRUSTS : YEARS 2006-2010…678; 8. THE

VARIOUS REGIONS OF THE COUNTRY…679.

Article 123. Wage Order………………………………………………………………… …………………………………….679 ...

Article 124. Standards/Criteria for Minimum Wage Fixing………………………………………………………………… 679 ..

NOTES AND COMMENTS:

  • 1. JOINT DISCUSSION OF ARTICLES 123 AND 124…681; 2. AMENDED RULES OF PROCEDURE ON

MINIMUM WAGE FIXING…682; 3. WAGE DISTORTION…696; 4. EXEMPTION FROM WAGE ORDER…704;

  • 5. EXECUTION OF DENIED/DISAPPROVED/DISMISSED APPLICATIONS FOR EXEMPTION…724; 6. TAX

EXEMPTION OF MINIMUM WAGE EARNERS FROM PAYMENT OF INCOME TAX ON THEIR TAXABLE

INCOME…725; 7. OBLIGATION OF EMPLOYERS TO COMPLY WITH REGISTRATION AND

REPORTORIAL REQUIREMENTS…726; 8. R.A. NO. 8188 - INCREASING THE PENALTY AND IMPOSING

xvii

DOUBLE INDEMNITY FOR VIOLATION OF PRESCRIBED INCREASES OR ADJUSTMENTS IN THE WAGE

RATES…726; 9. APPEAL TO THE COMMISSION (NWPC)…728; 10. QUORUM…729; 11. DISPOSITION OF

PENDING MATTERS…729; 12. OFFICIAL RECORDS…729.

Article 125. Freedom to Bargain………………………………………………………………… ………………………… 730

...

...

NOTES AND COMMENTS:

  • 1. WAGE INCREASES THROUGH COLLECTIVE BARGAINING…730; 2. WAGE INCREASES AND BENEFITS

FROM CBA AND LAW; DISTINCTION…730; 3. LAW IS PRESUMED PART OF CBA…734; 4. PROHIBITION

ON CBA STIPULATIONS BELOW MINIMUM LEGAL STANDARDS

...

734;

5. BINDING EFFECT OF CBA…734;

  • 6. MANDATORY CBA REGISTRATION REQUIREMENT…734; 7. OBLIGATION OF EMPLOYER TO

RESPECT THE CBA…735; 8. SUSPENSION OF CBA NEGOTIATIONS FOR TEN (10) YEARS HELD

VALID…736.

Article 126. Prohibition Against Injunction……………………………………………………………………………………738

NOTES AND COMMENTS:

  • 1. INJUNCTION AGAINST PROCEEDINGS BEFORE THE RTWPBs AND THE NWPC, PROHIBITED…738; 2.

JUDICIAL REVIEW…738

Article 127. Non-Diminution of Benefits…………………………………………………………………… ……….……….739 ...

NOTES AND COMMENTS:

  • 1. NON-DIMINUTION OF BENEFITS PROVIDED UNDER R.A. NO. 6727…739; 2. NON-DIMINUTION OF

BENEFITS UNDER ARTICLE 127…739; 3. REPLICATION OF THE PROVISION OF ARTICLE 127 IN WAGE

ORDERS…739

Chapter VI…………………………………………………………………… ………………………………………………… 740

...

ADMINISTRATION AND ENFORCEMENT………………………………………………………………… …………………740 ...

Article 128. Visitorial and Enforcement Power…………………………………………………………………

...

…………

740 ....

NOTES AND COMMENTS:

  • 1. THREE (3) KINDS OF POWER UNDER ARTICLE 128…741; 2. VISITORIAL POWER UNDER ARTICLE

128…742; 3. ENFORCEMENT POWER UNDER ARTICLE 128…742;4. NO INJUNCTION MAY BE ISSUED

AGAINST THE EXERCISE OF THE ENFORCEMENT POWER UNDER ARTICLE 128…764; 5. PENALTY FOR

VIOLATION OF, OR ABUSE OF AUTHORITY BY, GOVERNMENT EMPLOYEES UNDER ARTICLE 128…765;

  • 6. MAINTENANCE OF EMPLOYMENT RECORDS AS REQUIRED UNDER ARTICLE 128…765; 7. RULES ON

THE DISPOSITION OF LABOR STANDARDS CASES IN THE REGIONAL OFFICES…767;

Article 130. Nightwork Prohibition………………………………………………………………… ……………………… 807

....

..

NOTES AND COMMENTS:

  • 1. PROHIBITION AGAINST NIGHTWORK OF WOMEN EMPLOYEES…807.

Article 131. Exceptions…………………………………………………………………… ………………………………… 807

...

...

NOTES AND COMMENTS:

  • 1. EXCEPTIONS TO THE PROHIBITIONS IN ARTICLE 130…808.

Article 132. Facilities for Women………………………………………………………………… … ………………………808

..

...

NOTES AND COMMENTS:

  • 1. FACILITIES FOR WOMEN EMPLOYEES…809; 2. RELATION OF ARTICLE 132 TO AGREEMENTS…810.

Article 133. Maternity Leave Benefits……………………………………………………………….……

...

…………………

..

810

NOTES AND COMMENTS:

  • 1. MATERNITY LEAVE, DEFINED…810; 2. PARAGRAPHS [A] AND [C] OF ARTICLE 133 NO LONGER

APPLY…810; 3. PARAGRAPH [B] OF ARTICLE 133 STILL APPLIES…813; 4. LIMITATION ON MATERNITY

LEAVE BENEFITS…813; 5. RELATION OF THE MATERNITY LEAVE PROVISION UNDER THE LAW TO

AGREEMENTS…814; 6. PATERNITY LEAVE ACT OF 1996…814.

Article 134. Family Planning Services; Incentives for Family Planning…………………………………………………….815

NOTES AND COMMENTS:

  • 1. REQUIREMENT UNDER PARAGRAPH [A] OF ARTICLE 134…815; 2. INCENTIVE BONUS SCHEMES…815.

Article 135. Discrimination Prohibited…………………………………………………………………… ………………….816 ...

NOTES AND COMMENTS:

  • 1. ACTS OF DISCRIMINATION PROHIBITED UNDER ARTICLE 135…816; 2. CRIMINAL LIABILITY FOR

COMMISSION OF DISCRIMINATORY ACTS…816; 3. SPECIAL LAWS RELEVANT TO ARTICLE 135…817.

Article 136. Stipulation Against Marriage…………………………………………………………….……… …………… 843

...

...

NOTES AND COMMENTS:

  • 1. INVALIDITY OF STIPULATION AGAINST MARRIAGE…844; 2. RELEVANT JURISPRUDENCE…844.

Article 137. Prohibited

Acts………………………………………………………………… ………….…………………… 845

...

...

NOTES AND COMMENTS:

  • 1. PROHIBITED ACTS UNDER ARTICLE 137 AND ITS IMPLEMENTING RULES…846; 2. DENIAL OF

BENEFITS OR DISMISSAL OF A WOMAN EMPLOYEE TO DEPRIVE HER OF BENEFITS…846; 3.

DISCHARGING A WOMAN DUE TO PREGNANCY…846; 4. DISCHARGING A WOMAN EMPLOYEE FOR

HAVING FILED A CASE OR FOR TESTIFYING OR BEING ABOUT TO TESTIFY IN A CASE…847; 5.

PENALTY FOR COMMISSION OF THE PROHIBITED ACTS UNDER ARTICLE 137…848.

Article 138. Classification of Certain Women Workers……………………………………………………………………

.....

848

NOTES AND COMMENTS:

  • 1. SPECIAL PROVISION FOR WOMEN WORKING IN NIGHT CLUBS AND SIMILAR

ESTABLISHMENTS…848; 2. REGULARITY OF EMPLOYMENT…848; 3. HOSPITALITY GIRLS ARE NOT

REGULAR EMPLOYEES…848.

Chapter II…………………………………………………………………… ……………………………………………………… 849

...

..

EMPLOYMENT OF MINORS…………………………………………………………………… ……………………………… 849

...

..

xviii

Article 139. Minimum Employable Age…………………………………………………………………… …………………849 ...

NOTES AND COMMENTS:

1.

SIGNIFICANCE OF ARTICLES 139 AND 140…849; 2. ARTICLES 139 AND 140 SHOULD BE VIEWED AND

UNDERSTOOD WITHIN THE CONTEXT OF THE NEW LAWS AFFECTING THE EMPLOYMENT OF

CHILDREN…849; 3. HISTORICAL DEVELOPMENT IN THE LAWS AFFECTING THE EMPLOYMENT AND

WELFARE OF CHILDREN…849; 4. CURRENT GOVERNING LAW ON THE EMPLOYMENT OF

CHILDREN…853; 5. POLICY OF THE LAW AS ENUNCIATED IN R. A. NO. 9231…854; 6. RULES

IMPLEMENTING THE LATEST AMENDATORY LAW [R.A. NO. 9231]…855; 7. WORKING CHILD…855; 8.

EMPLOYER OF A WORKING CHILD…855; 9. PROHIBITION ON THE EMPLOYMENT OF CHILDREN

BELOW 15 YEARS OF AGE; EXCEPTIONS AND CONDITIONS…856; 10. PROHIBITION ON THE

EMPLOYMENT OF CHILDREN IN WORST FORMS OF CHILD LABOR…856; 11. PROHIBITION ON THE

EMPLOYMENT OF CHILDREN IN CERTAIN ADVERTISEMENTS…859; 12. PROHIBITION AGAINST CHILD

DISCRIMINATION UNDER ARTICLE 140 OF THE LABOR CODE…859; 13. HOURS OF WORK OF A

WORKING CHILD…860; 14. EMPLOYMENT OF CHILDREN AS HOMEWORKERS…860; 15. EMPLOYMENT

OF CHILDREN AS HOUSEHELPERS…860; 16. EMPLOYMENT OF CHILDREN AS LEARNERS…860; 17.

REGULARITY OF EMPLOYMENT OF WORKING CHILDREN…860; 18. WORK PERMIT…861; 19. INCOME

OF A WORKING CHILD…864; 20. ACCESS TO EDUCATION AND TRAINING FOR THE WORKING

CHILD…865; 21. ACCESS TO IMMEDIATE LEGAL, MEDICAL AND PSYCHO-SOCIAL SERVICES…865; 22.

ENFORCEMENT AND ADMINISTRATION…866; 23. INDUSTRY GUIDELINES AND SELF-POLICING

MECHANISMS…867; 24. ADMINISTRATION OF TRUST FUND TO BE SET UP FROM FINES AND

PENALTIES…868; 25. FILING OF COMPLAINTS FOR VIOLATIONS OF R.A. NO. 7610, AS AMENDED BY R.A.

NO. 9231…868; 26. SPEEDY DISPOSITION OF CASES INVOLVING CHILDREN…869; 27. PENAL

PROVISIONS FOR VIOLATION OF R.A. NO. 7610, AS AMENDED BY R.A. NO. 9231…869; 28. PAYMENT OF

SEPARATION PAY IN CASE OF CLOSURE DUE TO VIOLATION OF R.A. NO. 7610, AS AMENDED BY R.A.

NO. 9231…870; 29. PERTINENT PROVISIONS OF P.D. NO. 603…871; 30. EMPLOYMENT OF POOR BUT

DESERVING STUDENTS DURING SUMMER AND/OR CHRISTMAS VACATIONS…873; 31. YOUTH

EDUCATION – YOUTH EMPLOYMENT PROJECT (YE-YE PROJECT)…874.

 

Chapter III…………………………………………………………………… ………………………………………………………875 ...

EMPLOYMENT

OF HOUSEHELPERS…………………………………………………………………… …………………….875 ...

Article 141.

Coverage…………………………………………………………………… …………………………………….875 ...

NOTES AND COMMENTS:

 

1.

COVERAGE OF CHAPTER III, TITLE III, BOOK III ON EMPLOYMENT OF HOUSEHELPERS…875; 2.

HOUSEHELPER…875; 3. DOMESTIC OR HOUSEHOLD SERVICE…875; 4. HOUSEHOLD EMPLOYER…875;

5.

LAW APPLIES IRRESPECTIVE OF METHOD OF PAYMENT OF WAGES…876.

 

Article 142.

Contract of Domestic Service………………………………………………………….………… …………… 876

...

NOTES AND COMMENTS:

 

1.

TERM OF EMPLOYMENT CONTRACT OF HOUSEHELPERS…876; 2. RELEVANT PROVISION IN THE

CIVIL CODE…876.

 

Article

143.

Minimum

Wage…………………………………………………………………… …………………………… 876

...

Article 144. Minimum Cash Wage

...

…………………………………………………………………

………………………876

NOTES AND COMMENTS:

1.

JOINT DISCUSSION OF ARTICLES 143 AND 144…877; 2. MINIMUM WAGE RATES PRESCRIBED BY

RTWPBs DO NOT INCLUDE THOSE FOR HOUSEHOLD OR DOMESTIC HELPERS…877; 3. LAW

PRESCRIBING MINIMUM WAGE RATES FOR HOUSEHELPERS…877; 4. INCREASE IN HOUSEHELPERS’

MINIMUM WAGE RATES DEPENDS SOLELY ON THE EMPLOYERS…878; 5. NO STANDARDS OR

CRITERIA FOR FIXING THE MINIMUM WAGE RATES OF HOUSHELPERS…878; 6. MINIMUM WAGE

RATES PRESCRIBED UNDER ARTICLE 143 ARE ON A MONTHLY BASIS…878; 7. AMOUNT OF THE

LEGALLY-MANDATED MINIMUM WAGE RATES DEPENDS ON THE GEOGRAPHICAL AREA WHERE

HOUSEHELPERS WORK…878; 8. PAYMENT OF HOUSEHELPER’S WAGE BY RESULTS…879; 9.

PROHIBITED REDUCTION OF PAY…879; 10. TIME AND MANNER OF PAYMENT…879; 11. SSS COVERAGE

OF HOUSEHELPERS…879; 12. PENALTY FOR VIOLATION OF R.A. NO. 7655 [OR ARTICLE 143]…881; 13.

JURISDICTION OVER CASES INVOLVING HOUSEHELPERS…881; 14. RELATION OF ARTICLE 143 TO

OTHER LAWS AND AGREEMENT…881.

 

Article 145. Assignment to Non-Household Work………………………………………………….…………………………881

NOTES AND COMMENTS:

 

1.

COMPENSATION FOR NON-HOUSEHOLD WORK OF HOUSEHELPERS…881; 2. HOUSEHELPERS

WORKING IN THE COMPANY PREMISES OF EMPLOYERS…882.

 

Article 146.

Opportunity for Education…………………………………………………………………… …………………883 ...

NOTES AND COMMENTS:

 

1.

LAWS MANDATING THE GRANT OF OPPORTUNITY FOR EDUCATION TO HOUSEHELPERS…883; 2.

DISTINCTIONS AMONG THE LAWS…884; 3. HOUSEHELPERS UNDER THE AGE OF EIGHTEEN (18)

YEARS ARE CONSIDERED WORKING CHILDREN UNDER R.A. NO. 7610, AS AMENDED…884; 4. NO

PERSON BELOW FIFTEEN (15) YEARS OF AGE MAY BE EMPLOYED AS HOUSEHELPER OUTSIDE OF

THE DIRECT AND SOLE RESPONSIBILITY OF HIS PARENTS OR LEGAL GUARDIAN…885.

Article 147. Treatment of Househelpers……………………………………………………………………………………… 885 ..

NOTES AND COMMENTS:

 

1.

PROVISION UNDER THE LABOR CODE…885; 2. PROVISION UNDER THE CIVIL CODE…885; 3. HOURS

OF WORK OF HOUSEHELPERS…885; 4. OVERTIME WORK…886; 5. MONTHLY VACATION…886.

Article 148. Board, Lodging, and Medical Attendance……………………………………………………………………

......

887

NOTES AND COMMENTS:

xix

1. BOARD, LODGING AND MEDICAL ATTENDANCE, NOT PART OF COMPENSATION OF HOUSEHELPERS…887; 2. BOARD, LODGING AND
1.
BOARD, LODGING AND MEDICAL ATTENDANCE, NOT PART OF COMPENSATION OF
HOUSEHELPERS…887; 2. BOARD, LODGING AND MEDICAL ATTENDANCE SHOULD BE PROVIDED FREE
OF CHARGE…887; 3. MEDICAL ATTENDANCE GENERALLY DOES NOT INCLUDE EXPENSES OF
HOSPITALIZATION…887; 4. RULE IN THE CASE OF CHILDREN OR RELATIVES OF HOUSEHELPERS
WHO LIVE UNDER THE EMPLOYER’S ROOF…888; 5. FUNERAL EXPENSES IN CASE OF DEATH OF
HOUSEHELPER…888; 6. DISPOSITION OF HOUSEHELPER’S CORPSE OTHER THAN BURIAL…889.
Article 149. Indemnity for Unjust Termination of Services…………………………………………………………………
...
889
NOTES AND COMMENTS:
1.
APPLICABILITY OF ARTICLE 149…889; 2. HOUSEHELPERS CAN NEVER ACQUIRE REGULARITY OF
EMPLOYMENT
889;
3. EMPLOYMENT OF HOUSEHELPERS IS FIXED-TERM IN NATURE…890; 4. NO LAW
GRANTS PROBATIONARY EMPLOYMENT TO HOUSEHELPERS…890; 5. CONCEPT OF REGULAR
EMPLOYMENT IN ARTICLE 280 DOES NOT CONTEMPLATE HOUSEHOLD SERVICES RENDERED BY
HOUSEHELPERS…892; 6. HOUSEHELPERS ARE NOT ENTITLED TO THE RELIEFS GRANTED UNDER
ARTICLE 279 OF THE LABOR CODE…892; 7. THE EMPLOYMENT OF HOUSEHELPERS CEASES UPON ITS
EXPIRATION…892; 8. THE CONTRACT OF EMPLOYMENT OF HOUSEHELPERS IS TERMINABLE BY
MERE NOTICE…893; 9. HOUSEHELPERS ENJOY SECURITY OF TENURE ONLY DURING THE
EFFECTIVITY OF THEIR FIXED-TERM EMPLOYMENT…893; 10. OBSERVANCE OF DUE PROCESS IN
TERMINATION OF EMPLOYMENT OF HOUSEHELPERS…893; 11. CONSEQUENCES OF UNJUST
TERMINATION OF FIXED-TERM EMPLOYMENT…895.
Article 150. Service of Termination Notice………………………………….…………………………………
...
…………….895
NOTES AND COMMENTS:
1.
APPLICABILITY OF ARTICLE 150…895; 2. NOTICE REQUIREMENT…895; 3. RATIONALE BEHIND THE
NOTICE REQUIREMENT…895; 4. RELEVANT CIVIL CODE PROVISION…895.
Article 151.
Employment Certification…………………………………………………………………… ………………….896 ...
NOTES AND COMMENTS:
1.
ISSUANCE OF EMPLOYMENT CERTIFICATE…896; 2. PERTINENT CIVIL CODE PROVISION…896.
Article 152.
Employment Record…………………………………………………………………… ………………… ...
896
NOTES AND COMMENTS:
1.
RECORD OF EMPLOYMENT…896; 2. DISTINCTION BETWEEN ARTICLES 151 AND 152…897.
Chapter IV……………………………………………………………………
...
………………………………………………………898
EMPLOYMENT
OF HOMEWORKERS…………………………………………………………………… ……………………898 ...
Article 153. Regulation of Industrial Homeworkers…………………………………………………………………… …
...
898 ....
Article 154. Regulations of Secretary of Labor……………………………….……………………………………
...
………
898
Article 155. Distribution of Homework……………………………………………………………………
...
………………….898
NOTES AND COMMENTS:
1.
JOINT DISCUSSION OF ARTICLES 153, 154 AND 155…898; 2. TWO KINDS OF EMPLOYEES
CONTEMPLATED IN ARTICLE 153…898; 3. DISTINCTION BETWEEN ARTICLES 153 AND 154…899; 4.
SIGNIFICANCE OF ARTICLE 155…899; 5. DEPARTMENT ORDER NO. 5 [FEBRUARY 4, 1992]…900; 6.
DUTIES OF EMPLOYER, CONTRACTOR OR
..
900;
7. STANDARD OUTPUT RATES OR
MINIMUM PIECE RATES…900; 8. PAYMENT FOR HOMEWORK…901; 9. CONDITIONS FOR PAYMENT OF
WORK…901; 10. DEDUCTIONS FOR LOST, DESTROYED, SOILED OR DAMAGED MATERIALS…902; 11.
EMPLOYMENT OF WORKING CHILDREN (MINORS) AS HOMEWORKERS…902; 12. PROHIBITIONS ON
CERTAIN KINDS OF HOMEWORK…902; 13. REGULARITY OF EMPLOYMENT OF HOMEWORKERS…902;
14. RIGHT TO SELF-ORGANIZATION OF HOMEWORKERS…902; 15. ENFORCEMENT POWER…903.
BOOK FOUR
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
Title I…………………………………………………………………… …………………………………………………………… ...
905
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY……………………………………………………………………… 905 ..
Chapter I…………………………………………………………………… ……………………………………………………… ...
905
MEDICAL AND DENTAL SERVICES…………………………………………………………………………………………… 905 ..
NOTES AND COMMENTS:
1.
INTRODUCTION TO BOOK IV OF THE LABOR CODE…905; 2. COVERAGE OF CHAPTER I, TITLE I OF
BOOK IV OF THE LABOR CODE…906.
Article 156.
First-Aid Treatment……………………………………………….…………………… ……………………… ...
906
NOTES AND COMMENTS:
1.
CONCEPT OF FIRST-AID TREATMENT…906; 2. FIRST-AID MEDICINES, EQUIPMENT AND
FACILITIES…906; 3. QUALIFICATIONS OF A FIRST-AIDER…907; 4. TRAINING OF FIRST-AIDERS…907.
Article 157. Emergency Medical and Dental Services………………………………………………………………………
....
907
NOTES AND COMMENTS:
1.
EMERGENCY MEDICAL AND DENTAL SERVICES…908; 2. HAZARDOUS WORKPLACES…909; 3. THE
PHYSICIAN, DENTIST OR NURSE MENTIONED IN ARTICLE 157 NEED NOT BE HIRED AS REGULAR
EMPLOYEES…909; 4. AGENCY TASKED TO DEVELOP AND ENFORCE DENTAL STANDARDS…910.
Article 158. When Emergency Hospital Not Required………………………………………………………………………
...
910
NOTES AND COMMENTS:
1.
EMERGENCY HOSPITAL OR DENTAL CLINIC; WHEN NOT REQUIRED…910.
Article 159.
Health Program…………………………………………………………………… …………………………… ...
910
NOTES AND COMMENTS:
1.
COMPREHENSIVE OCCUPATIONAL HEALTH PROGRAM…910.

xx

Article 160. Qualifications of Health Personnel…………………………………………………………………… ……… 911

...

..

NOTES AND COMMENTS:

  • 1. TRAINING AND QUALIFICATIONS OF HEALTH PERSONNEL…911; 2. OPPORTUNITY FOR TRAINING

AT EFFECTIVITY OF LABOR CODE…911.

Article 161. Assistance of Employer…………………………………………….…………………………………………… 912 ....

NOTES AND COMMENTS:

  • 1. DUTY OF EMPLOYER TO EXTEND ASSISTANCE…912; 2. MEDICAL AND DENTAL RECORDS…912.

Chapter II………………………………………………………………… ………………………………………………………… 913

...

..

OCCUPATIONAL HEALTH AND SAFETY…………………………………………………………………… ……………….913 ...

NOTES AND COMMENTS:

  • 1. COVERAGE OF CHAPTER II, TITLE I, BOOK IV OF THE LABOR CODE…913; 2. GENERAL

OCCUPATIONAL HEALTH AND SAFETY STANDARDS…913.

Article 162. Safety and Health Standards…………………………………………………………………… ……………….913 ...

NOTES AND COMMENTS:

  • 1. OCCUPATIONAL SAFETY AND HEALTH (OSH), DEFINED…914; 2. OCCUPATIONAL SAFETY AND

HEALTH STANDARDS…914; 3. SIGNIFICANT AMENDMENTS TO OSH STANDARDS…918; 4. RULE ON

WORK CONDITIONS NOT COVERED BY THE OSH STANDARDS…920; 5. INSTITUTE OF OCCUPATIONAL

HEALTH AND SAFETY…920; 6. OCCUPATIONAL SAFETY AND HEALTH CENTER (OSHC)…920; 7. POLICY

GUIDELINES GOVERNING THE OCCUPATIONAL SAFETY AND HEALTH OF WORKERS IN THE CALL

CENTER INDUSTRY…925; 8. GUIDELINES FOR THE IMPLEMENTATION OF POLICY AND PROGRAM ON

TUBERCULOSIS (TB) PREVENTION AND CONTROL IN THE WORKPLACE…927; 9. GUIDELINES FOR THE

IMPLEMENTATION OF A DRUG-FREE WORKPLACE POLICIES AND PROGRAMS FOR THE PRIVATE

SECTOR…930.

Article 163. Research…………………………………………………………………… …………………………………… 938

...

..

NOTES AND COMMENTS:

  • 1. RESEARCH…938; 2. CONTINUING STUDIES AND SURVEYS…938; 3. RESEARCH AND STUDIES

CONDUCTED BY THE OSHC…938.

Article 164. Training

Programs…………………………………………………………………… ………………………….940 ...

NOTES AND COMMENTS:

  • 1. MANDATORY NATURE OF HEALTH AND SAFETY REQUIREMENTS…941; 2. TRAINING AND

ACCREDITATION OF PERSONNEL ON OCCUPATIONAL SAFETY AND HEALTH…941; 3. DUTIES OF

EMPLOYERS

..

941;

4. DUTIES OF WORKERS…942; 5. SAFETY OFFICER OR SAFETY MAN…942; 6. SAFETY

COMMITTEES…945; 7. PRACTITIONERS IN OCCUPATIONAL SAFETY AND HEALTH…947; 8.

OCCUPATIONAL SAFETY AND HEALTH CONSULTANTS OR CONSULTING ORGANIZATIONS…947; 9.

OCCUPATIONAL SAFETY AND HEALTH TRAINING ORGANIZATIONS…948; 10. DUTIES OF BUILDERS,

CONTRACTORS OR OTHER PERSONS…948; 11. ACCREDITATION OF QUALIFIED SAFETY AND HEALTH

PERSONNEL, PRACTITIONERS, CONSULTANTS AND CONSULTING AND TRAINING

ORGANIZATIONS…948; 12. PROHIBITION ON THE PRACTICE OF OCCUPATIONAL SAFETY AND

HEALTH…951; 13. AUDIT SYSTEM…951.

Article 165. Administration of Safety and Health Laws…………………………………………………………………… 951 .....

NOTES AND COMMENTS:

  • 1. ADMINISTRATION OF SAFETY AND HEALTH LAWS, REGULATIONS AND STANDARDS…952; 2.

ENFORCEMENT OF SAFETY AND HEALTH LAWS, REGULATIONS AND STANDARDS…953; 3.

COLLECTION OF REGULATORY FEES…953; 4. REGISTRATION OF BUSINESS…953.

Title II…………………………………………………………………… ……………………………………………………………955 ...

EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND……………………………………………………… 955 ...

Chapter I…………………………………………………………………… ……………………………………………………… 955

...

....

POLICY AND DEFINITIONS…………………………………………………………………… ……………………………… 955

...

...

Article 166. Policy…………………………………………………………………… ……………………………………… 955

...

...

NOTES AND COMMENTS:

  • 1. DECLARATION OF POLICY AND PURPOSE…955; 2. CONSTITUTIONALITY OF THE LAW ON

EMPLOYEES’ COMPENSATION…955; 3. HISTORICAL BACKGROUND…956; 4. THE EMPLOYEES’

COMPENSATION PROGRAM UNDER THE LABOR CODE, AS AMENDED…958; 5. ADVANTAGES OF THE

EMPLOYEES’ COMPENSATION PROGRAM UNDER THE LABOR CODE OVER THOSE PROVIDED IN

PREVIOUS LAWS…959; 6. COMPENSABLE CONTINGENCIES UNDER THE ECP…959; 7. COMPENSATION

BENEFITS FOR WORK-RELATED INJURY, SICKNESS, DISABILITY OR DEATH…960; 8. DISTINCTIONS

BETWEEN THE WORKMEN’S COMPENSATION ACT AND THE LABOR CODE ON PROOF OF

COMPENSABILITY…962; 9. DOCTRINE OF PRESUMPTIVE COMPENSABILITY AND THEORY OF

AGGRAVATION; ABANDONED…962; 10. PROOF OF COMPENSABILITY UNDER THE PRESENT

EMPLOYEES’ COMPENSATION SCHEME UNDER THE LABOR CODE, AS AMENDED…963; 11. DESPITE

ABANDONMENT OF THE DOCTRINES, THE PRESENT LAW CONTINUES TO BE AN EMPLOYEES’

COMPENSATION LAW OR A SOCIAL LEGISLATION…965; 12. DESPITE ABANDONMENT OF THE

DOCTRINES, PRESUMPTION OF COMPENSABILITY STILL APPLIES IN CASES OF POLICEMEN AND

MEMBERS OF THE AFP…966; 13. LAW APPLICABLE TO SPECIFIC WORKMEN’S COMPENSATION

CASES…966.

Article 167. Definition of Terms…………………………………………………………………… …………………………967 ...

NOTES AND COMMENTS:

  • 1. EMPLOYER…970; 2. EMPLOYEE…970; 3. TERMS RELATED TO CREDITED EARNINGS…971.

Chapter II…………………………………………………………………… ……………………………………………………… 974

...

..

xxi

COVERAGE AND LIABILITY…………………………………………………………………… ………………………………974 ...

Article 168. Compulsory Coverage…………………………………………………………………… ………………………974 ...

NOTES AND COMMENTS:

  • 1. BACKGROUND ON THE STATE INSURANCE FUND [SIF]…974; 2. SCOPE OF COVERAGE OF THE

ECP…975; 3. NATURE OF COVERAGE…976; 4. COMPULSORY COVERAGE OF PRIVATE SECTOR

EMPLOYERS AND EMPLOYEES UNDER THE SOCIAL SECURITY ACT OF 1997…976; 5. COMPULSORY

COVERAGE OF PUBLIC SECTOR EMPLOYEES UNDER THE GSIS ACT OF 1997

...

977.

Article 169. Foreign Employment…………………………………………………………………… …………………….…977 ...

NOTES AND COMMENTS:

  • 1. COVERAGE OF FILIPINOS EMPLOYED ABROAD…977; 2. MEDICAL SERVICES, APPLIANCES AND

SUPPLIES…977; 3. RULE WHEN EMPLOYMENT CONTRACT STIPULATES THE APPLICATION OF

FOREIGN LAW…977.

Article 170. Effective Date of Coverage…………………………………………………………………… …………………978 ...

NOTES AND COMMENTS:

  • 1. EFFECTIVITY DATE OF THE COMPULSORY COVERAGE OF EMPLOYERS AND EMPLOYEES UNDER

THE ECP…978; 2. EFFECTIVITY DATE OF THE COMPULSORY COVERAGE OF PRIVATE SECTOR

EMPLOYERS AND EMPLOYEES UNDER THE SOCIAL SECURITY ACT OF 1997…979; 3. EFFECTIVITY

DATE OF THE COMPULSORY COVERAGE OF PUBLIC SECTOR EMPLOYEES UNDER THE GSIS ACT OF

1997…979.

Article 171. Registration………………………………………………………….………… ……………………………… 980

...

....

NOTES AND COMMENTS:

  • 1. COMPULSORY REGISTRATION OF EMPLOYERS AND EMPLOYEES UNDER THE ECP…980; 2.

GUIDELINES FOR PUBLIC SECTOR REGISTRATION WITH GSIS…980; 3. GUIDELINES FOR PRIVATE

SECTOR REGISTRATION WITH SSS…980; 4. GUIDELINES IN CASE AN EMPLOYEE HAS NOT YET BEEN

REGISTERED WITH THE SYSTEM (GSIS/SSS) AT THE TIME OF EMPLOYMENT

...

980;

5. PENALTY FOR

VIOLATION OF THE REGISTRATION REQUIREMENTS…981.

Article 172. Limitation of Liability…………………………………………………………………… ………………………981 ...

NOTES AND COMMENTS:

  • 1. OVERVIEW OF ARTICLE 172…981; 2. EXISTENCE OF EMPLOYMENT RELATIONSHIP, ESSENTIAL IN

THE GRANT OF COMPENSATION BENEFITS UNDER THE LAW…982; 3. GROUNDS FOR

COMPENSABILITY UNDER THE PRESENT LAW AND RULES…982; 4. COMPENSABILITY OF INJURY

RESULTING IN DISABILITY OR DEATH…983; 5. COMPENSABILITY OF DISEASE, SICKNESS OR ILLNESS

RESULTING IN DISABILITY OR DEATH…1011; 6. PRE-EMPLOYMENT AND PERIODIC MEDICAL

EXAMINATION…1035; 7. SICKNESS BENEFIT UNDER THE SOCIAL SECURITY ACT OF 1997…1037.

Article 173. Extent of liability…………………………………………………………………… ………………………… 1038

...

..

NOTES AND COMMENTS:

  • 1. PRINCIPLE OF EXCLUSIVITY OF BENEFITS FROM THE SIF…1039; 2. PREVAILING RULE IN CASE OF

SIMILAR BENEFITS GRANTED AND PROVIDED IN SEVERAL LAWS…1040; 3. PRECURSOR OF ARTICLE

173…1041; 4. CHOICE BETWEEN REMEDIES UNDER THE LABOR CODE (FORMERLY THE WORKMEN’S

COMPENSATION ACT) AND THE CIVIL CODE…1042; 5. DOUBLE RECOVERY OF BENEFITS OF PRIVATE

SECTOR WORKERS UNDER THE LABOR CODE AND SSS LAW, ALLOWED

...

1047;

6. EXCLUSIVENESS OF

BENEFITS UNDER THE GSIS LAW; DOUBLE RECOVERY, NOT ALLOWED…1049; 7. LIMITED

PORTABILITY SCHEME - TOTALIZING THE WORKERS’ CREDITABLE SERVICES OR CONTRIBUTIONS

TO BOTH SSS AND GSIS…1049.

Article 174. Liability of Third Party/ies………………………………………….………………………… ……………….1052 ...

NOTES AND COMMENTS:

  • 1. THIRD PARTY; CONCEPT AND MEANING…1053; 2. RULE ON RECOVERY IN CASE OF DISABILITY OR

DEATH CAUSED BY A THIRD PARTY…1053; 3. LEGAL SUBROGATION…1053; 4. RULE IN CASE OF

EXCESS RECOVERY…1054; 5. RULE AGAINST DOUBLE RECOVERY BY EMPLOYEE…1054.

Article 175. Deprivation of the Benefits…………………………………………………………………

...

…………………

..

1054

NOTES AND COMMENTS:

  • 1. DEPRIVATION OF BENEFITS OF WORKERS…1054; 2. EFFECT OF DEPRIVATION OF BENEFITS…1054.

Chapter III…………………………………………………………………… …………………………………………………… 1055

...

..

ADMINISTRATION…………………………………………………………………… ………………………………………….1055 ...

Article 176. Employees’ Compensation Commission…………………………………………………………………… …1055 ...

NOTES AND COMMENTS:

  • 1. CREATION OF THE EMPLOYEES’ COMPENSATION COMMISSION (ECC)…1055; 2. COMPOSITION OF

THE ECC…1056; 3. THE GSIS…1057; 4. THE SSS…1057.

Article 177. Powers and Duties…………………………………………………………………… ……………………… 1058

...

....

NOTES AND COMMENTS:

  • 1. POWERS AND DUTIES OF THE EMPLOYEES’ COMPENSATION COMMISSION [ECC]…1059; 2. POWER

TO ASSESS AND FIX CONTRIBUTIONS BY EMPLOYERS…1059; 3. POWER TO MAKE ACTUARIAL

STUDIES AND CALCULATIONS REGARDING THE GRANT OF BENEFITS…1059; 4. RULE-MAKING

POWER…1060; 5. POLICY-MAKING POWER…1060; 6. POWER TO DETERMINE AND APPROVE

ADDITIONAL OCCUPATIONAL DISEASES AND WORK-RELATED ILLNESSES…1062; 7. APPOINTING

POWER…1062; 8. BUDGETARY POWER…1062; 9. POWER TO ADMINISTER OATH AND ISSUE

COMPULSORY PROCESSES…1062; 10. CORPORATE POWER…1063; 11. APPELLATE POWER…1063; 12.

POWER TO ENFORCE AND EXECUTE DECISIONS, ORDERS OR RESOLUTIONS…1063; 13. OHER

PLENARY POWERS…1063; 14. CONTEMPT POWER OF THE ECC…1064; 15. POWERS AND DUTIES OF THE

xxii

SSC AND SSS UNDER THE SOCIAL SECURITY ACT OF 1997…1064; 16. POWERS AND FUNCTIONS OF THE

GSIS UNDER THE GSIS ACT OF 1997…1066.

Article 178. Management of

Funds...

NOTES AND COMMENTS:

……………………………………….…………………………… ……………… 1068

...

....

  • 1. MANAGEMENT AND DISPOSITION OF REVENUES COLLECTED BY THE SYSTEM (GSIS/SSS)…1069; 2.

DISBURSEMENT OF FUNDS; LIMITATION…1069; 3. MANAGEMENT OF THE SSS FUNDS UNDER THE

SOCIAL SECURITY ACT OF 1997…1069; 4. MANAGEMENT OF THE SOCIAL INSURANCE FUND UNDER

THE GSIS ACT OF 1997…1070.

Article 179. Investment of Funds………………………………………………………………………

……………………1070 ...

NOTES AND COMMENTS:

  • 1. STATE INSURANCE FUND [SIF]…1070; 2. DISPOSITION OF THE SIF…1071; 3. SUBMISSION OF YEARLY

OPERATIONAL BUDGETS…1071; 4. LATEST MONITORING OF THE SIF…1071; 5. INVESTMENT OF SSS

FUNDS UNDER THE SOCIAL SECURITY ACT OF 1997…1071; 6. INVESTMENT OF THE FUNDS OF THE

GSIS UNDER THE GSIS ACT OF 1997…1074.

Article 180. Settlement of Claims……………………………………………………………………… ……………………1075 ...

NOTES AND COMMENTS:

  • 1. JURISDICTION…1075; 2. FILING OF EMPLOYEES’ COMPENSATION CLAIMS…1076; 3. PROCEDURE IN

PURSUING THE CLAIMS WITH THE SYSTEM (GSIS/SSS)…1077; 4. ADJUDICATION OF COMPENSATION

CLAIMS BY THE SYSTEM (GSIS/SSS)…1078; 5. APPEAL TO THE ECC FROM THE AWARDS, DECISIONS,

ORDERS OR RESOLUTIONS OF THE SYSTEM (GSIS/SSS)…1078; 6. THE SYSTEM (GSIS/SSS) AS PROPER

PARTY IN EMPLOYEES’ COMPENSATION CASES…1081; 7. LIBERALITY IN THE INTERPRETATION OF

COMPENSATION LAWS AND RULES…1081; 8. BURDEN OF PROOF IN EMPLOYEES’ COMPENSATION

CASES…1082; 9. TEST OF COMPENSABILITY AND DEGREE OF PROOF…1083; 10. QUITCLAIMS AND

RELEASES; LEGAL EFFECT

...

1088;

11. SETTLEMENT OF DISPUTES ARISING FROM THE SOCIAL

SECURITY ACT OF 1997…1089; 12. SETTLEMENT OF DISPUTES ARISING FROM THE GSIS ACT OF

1997…1089.

Article 181. Review……………………………………………………………………… ………………………………… 1089

...

...

NOTES AND COMMENTS:

  • 1. ARTICLE 181 NO LONGER APPLIES…1089; 2. JUDICIAL REVIEW OF DECISIONS, ORDERS OR

RESOLUTIONS OF ECC…1090; 3. RULE ON EXHAUSTION OF ADMINISTRATIVE REMEDIES;

EXCEPTIONS…1092; 4. APPEALS AND COURT REVIEW OF CASES COGNIZABLE BY THE SSC UNDER

THE SOCIAL SECURITY ACT OF 1997…1093; 5. APPEALS IN CASES COGNIZABLE BY THE GSIS UNDER

THE GSIS ACT OF 1997…1093.

Article 182. Enforcement of Decisions……………………………………………………………………… ……………

...

...

1093

NOTES AND COMMENTS:

  • 1. WHEN DECISIONS, ORDERS OR RESOLUTIONS OF ECC BECOME FINAL AND EXECUTORY…1094; 2.

AWARDS GRANTED BY ECC IN APPEALED CASES BECOME ENFORCEABLE AFTER FIFTEEN (15)

DAYS…1094; 3. DECISIONS, ORDERS AND RESOLUTIONS IN OTHER CASES…1094; 4. FAILURE TO

COMPLY WITH ECC’S WRIT OF EXECUTION…1094; 5. EXECUTION OF DECISIONS IN CASES

COGNIZABLE BY THE SSC UNDER THE SOCIAL SECURITY ACT OF 1997…1095; 6. EXECUTION OF

DECISIONS OF THE BOARD IN CASES COGNIZABLE BY THE GSIS UNDER THE GSIS ACT OF 1997…1095.

Chapter IV……………………………………………………………………… ………………………………………………… 1096

...

..

CONTRIBUTIONS……………………………………………………………………… ……………………………………… 1096

...

....

Article 183. Employers’ Contributions……………………………………………………………………… …………… 1096

...

...

NOTES AND COMMENTS:

  • 1. NATURE OF CONTRIBUTIONS…1096; 2. EMPLOYER’S CONTRIBUTION TO THE SYSTEM…1096; 3.

GOOD FAITH, NOT A DEFENSE IN NON-REMITTANCE OF CONTRIBUTIONS…1098; 4. CONTRIBUTIONS

TO THE SSS UNDER THE SOCIAL SECURITY ACT OF 1997…1098; 5. CONTRIBUTIONS TO THE GSIS

UNDER THE GSIS ACT OF 1997…1100.

Article 184. Government Guarantee……………………………………………………………………… ……………… 1101

...

...

NOTES AND COMMENTS:

  • 1. GUARANTEE OF THE GOVERNMENT UNDER ARTICLE 184…1101; 2. RATIONALE FOR THE

PROVISION…1101; 3. PROMPT PAYMENT OF CLAIMS….1102; 4. GOVERNMENT GUARANTEE UNDER

THE SOCIAL SECURITY ACT OF 1997…1102; 5. GOVERNMENT GUARANTEE UNDER THE GSIS ACT OF

1997…1102.

Chapter V……………………………………………………………………… ……………………………………………………1103 ...

MEDICAL BENEFITS……………………………………………………………………… …………………………………….1103 ...

Article 185. Medical Services……………………….……………………………………………… ……………………… 1103

...

..

NOTES AND COMMENTS:

  • 1. CONDITIONS FOR ENTITLEMENT TO MEDICAL SERVICES, APPLIANCES AND SUPPLIES

...

1103;

2.

PERIOD OF ENTITLEMENT…1103; 3. EXTENT OF SERVICES…1103; 4. LOSS OF WAGES OR EARNING

CAPACITY NOT REQUIRED…1104.

Article 186. Liability……………………………………………………………………… ………………………………….1104 ...

NOTES AND COMMENTS:

  • 1. AUTHORITY TO CHANGE PHYSICIAN, HOSPITAL OR REHABILITATION FACILITY…1104; 2.

UNAUTHORIZED CHANGES IN MEDICAL SERVICES, APPLIANCES, SUPPLIES, HOSPITALS AND

PHYSICIANS…1104.

Article 187. Attending Physician……………………………………………………………………………………………1104

xxiii

NOTES AND COMMENTS:

  • 1. DUTIES OF ATTENDING PHYSICIAN…1105; 2. MEDICAL REPORTS…1105; 3. NATURE OF MEDICAL

INFORMATION…1105; 4. ACCREDITATION OF PHYSICIANS; MINIMUM REQUIREMENTS…1105; 5.

CONDITIONS ON ACCREDITED PHYSICIANS…1105; 6. MEDICAL CERTIFICATION; EVIDENTIARY AND

PROBATIVE VALUE THEREOF…1105.

Article 188. Refusal of Examination or Treatment……………………………………………………………………… ......1107

NOTES AND COMMENTS:

  • 1. UNREASONABLE REFUSAL BY EMPLOYEE OF MEDICAL EXAMINATION OR TREATMENT…1107; 2.

EFFECT OF UNREASONABLE REFUSAL BY EMPLOYEE…1107.

Article 189. Fees and Other Charges……………………………………………………………………… ……………… 1107

...

..

NOTES AND COMMENTS:

  • 1. STANDARD FEES AND CHARGES SET UNDER ARTICLE 189…1108; 2. MEDICAL BENEFITS IN ANNEX

“C” OF THE AMENDED RULES ON EMPLOYEES’ COMPENSATION…1108; 3. ACCREDITATION OF

HOSPITALS…1110; 4. UTILIZATION REVIEW…1110; 5. PAYMENT OF SERVICES OF ACCREDITED AND

NON-ACCREDITED HOSPITALS AND PHYSICIANS…1111; 6. EMERGENCY SERVICES…1111; 7. REFERRAL

BY EMPLOYER OF SICK OR INJURED EMPLOYEE…1111; 8. DIS-ACCREDITATION OF HOSPITAL OR

PHYSICIAN FOR VIOLATION OF CONDITIONS AND REQUIREMENTS…1111.

Article 190. Rehabilitation Services……………………………………………………………….……… ……………… 1112

...

...

NOTES AND COMMENTS:

  • 1. REHABILITATION, DEFINED…1112; 2. REHABILITEE, DEFINED…1112; 3. COVERAGE, NATURE AND

EFFECTIVITY…1112; 4. CONDITIONS TO ENTITLEMENT TO REHABILITATION SERVICES…1112; 5.

PERIOD OF ENTITLEMENT TO REHABILITATION SERVICES…1113; 6. EXTENT OF REHABILITATION

SERVICES…1113; 7. WORKERS REHABILITATION CENTER COMPLEX…1113; 8. OCCUPATIONAL

SAFETY AND HEALTH CENTER (OSHC)…1113; 9. ACCREDITATION OF REHABILITATION

FACILITIES…1114; 10. CONDITIONS ON ACCREDITED HOSPITALS OR REHABILITATION

FACILITIES…1114; 11. LIABILITY LIMITATIONS…1114; 12. SUSPENSION OR TERMINATION OF THE

REHABILITEE…1115; 13. APPEAL FROM THE DECISION SUSPENDING OR TERMINATING THE

REHABILITEE

...

1115;

14. PLACEMENT OF THE REHABILITEE…1115; 15. PARTICIPATION OF THE

SYSTEM (GSIS OR SSS)…1115; 16. REPORTS TO THE GOVERNING BOARD (ECC)…1115.

Chapter VI……………………………………………………………………… ………………………………………………… 1116

...

..

DISABILITY BENEFITS……………………………………………………………………… ………………………………….1116 ...

NOTES AND COMMENTS:

  • 1. THREE KINDS OF DISABILITY UNDER THE LABOR CODE…1116; 2. DISABILITY, MEANING…1116; 3.

REQUISITES FOR ENTITLEMENT TO DISABILITY OR SICKNESS BENEFITS…1116; 4. COMPENSATION

FOR DISABILITIES NOT MUTUALLY EXCLUSIVE…1117.

Article 191. Temporary Total Disability……………………………………………………………………… …………….1117 ...

NOTES AND COMMENTS:

  • 1. TOTAL DISABILITY, WHEN TEMPORARY UNDER ARTICLE 191…1117; 2. CONDITIONS TO

ENTITLEMENT IN CASE OF TEMPORARY TOTAL DISABILITY…1117; 3. PERIOD OF ENTITLEMENT IN

CASE OF TEMPORARY TOTAL DISABILITY…1118; 4. AMOUNT OF INCOME BENEFIT IN CASE OF

TEMPORARY TOTAL DISABILITY (TTD)

...

1118;

5. EFFECT OF GRANT OF TTD INCOME BENEFIT ON

LEAVE CREDITS…1119; 6. TEMPORARY TOTAL DISABILITY UNDER THE GSIS ACT OF 1997…1119.

Article 192. Permanent Total Disability……………………………………………………………………… …………….1119 ...

NOTES AND COMMENTS:

  • 1. DISABILITY, WHEN TOTAL AND PERMANENT UNDER ARTICLE 192…1120; 2. LITMUS TEST AND

DISTINCTION BETWEEN PERMANENT TOTAL DISABILITY AND PERMANENT PARTIAL

DISABILITY…1122; 3. RETIREMENT DUE TO INJURY OR SICKNESS AMOUNTS TO TOTAL

DISABILITY…1123; 4. CONDITIONS TO ENTITLEMENT IN THE CASE OF PERMANENT TOTAL

DISABILITY

...

1124;

5. PERIOD OF ENTITLEMENT IN THE CASE OF PERMANENT TOTAL

DISABILITY…1125; 6. INCOME BENEFIT IN THE CASE OF PERMANENT TOTAL DISABILITY…1125; 7.

AMOUNT OF BENEFIT FOR DEPENDENT CHILDREN…1126; 8. PERMANENT TOTAL DISABILITY UNDER

THE SOCIAL SECURITY ACT OF 1997…1127; 9. PERMANENT TOTAL DISABILITY UNDER THE GSIS ACT

OF 1997…1127.

Article 193. Permanent Partial Disability……………………………………………………………………… ………… 1128

...

...

NOTES AND COMMENTS:

  • 1. DISABILITY, WHEN PARTIAL AND PERMANENT…1129; 2. CONDITIONS TO ENTITLEMENT…1130; 3.

INCOME BENEFIT AND PERIOD OF ENTITLEMENT IN CASE OF PERMANENT PARTIAL

DISABILITY

...

1130;

4. PERMANENT PARTIAL DISABILITY UNDER THE SOCIAL SECURITY ACT OF

1997…1132; 5. PERMANENT PARTIAL DISABILITY UNDER THE GSIS ACT OF 1997

...

1133.

Chapter VII…….……………………………………………………………………… ………………….……………………… 1134

...

...

DEATH

BENEFITS……………………………………………………………………… ……………………………………… 1134

...

...

Article 194.

Death……………………………………………………………………… …………………………………….1134 ...

NOTES AND COMMENTS:

  • 1. DEATH; MEANING…1134; 2. COMPENSABLE DEATH…1134; 3. PROOF REQUIRED IN ORDER FOR

DEATH TO BE COMPENSABLE…1134; 4. INCOME BENEFIT IN CASE OF DEATH…1135; 5. CONDITIONS

TO ENTITLEMENT…1135; 6. PERIOD OF ENTITLEMENT TO DEATH BENEFIT…1136; 7. AMOUNT OF

DEATH BENEFIT…1136; 8. PRESUMPTIVE DEATH…1137; 9. DISTRIBUTION OF BENEFITS UPON THE

DEATH OF A PENSIONER…1137; 10. DEATH BENEFITS, NOT PART OF THE ESTATE OF THE

DECEASED…1137; 11. DEATH BENEFITS UNDER THE SOCIAL SECURITY ACT OF 1997…1138; 12. DEATH

xxiv

TABLE OF CONTENTS

BENEFITS UNDER THE GSIS ACT OF 1997…1138; 13. FUNERAL BENEFIT UNDER THE LABOR

CODE…1139; 14. FUNERAL BENEFIT UNDER THE SOCIAL SECURITY ACT OF 1997…1140; 15. FUNERAL

BENEFIT UNDER THE GSIS ACT OF 1997…1140.

Chapter VIII……………………………………………………………………… ……………………………………………… 1141

...

 

PROVISIONS COMMON TO INCOME BENEFITS………………………………………………………………………

...

….1141

Article 195. Relationship and Dependency…………………………………………………………………………………

1141 ...

NOTES AND COMMENTS:

  • 1. DEPENDENCY; MEANING…1141; 2. TEST OF DEPENDENCY…1141; 3. CLASSIFICATION OF

DEPENDENCY…1141; 4. SPECIFIC DEPENDENTS UNDER THE LABOR CODE

1142;

5.

BENEFICIARIES…1145; 6. WHEN TO DETERMINE BENEFICIARIES…1145; 7. RULE ON PRIORITY OF

BENEFICIARIES…1146; 8. BENEFITS PAYABLE…1146; 9. MONTHLY INCOME BENEFIT; HOW

DISTRIBUTED…1146; 10. EVIDENCE TO PROVE RELATIONSHIP AND DEPENDENCY…1146; 11.

DEPENDENCY RULE UNDER THE SSS LAW…1146; 12. SURVIVORSHIP BENEFITS UNDER THE GSIS ACT

OF 1997…1152.

Article 196. Delinquent Contributions………………………………………………………………………………………

1153 ...

NOTES AND COMMENTS:

  • 1. LIABILITY OF A DELINQUENT EMPLOYER…1153; 2. OBLIGATION OF THE SYSTEM (GSIS/SSS)TO PAY

IN ADVANCE ALL BENEFITS TO THE AFFECTED EMPLOYEE OR HIS DEPENDENTS AND RIGHT TO

PROCEED AGAINST ERRING DELINQUENT EMPLOYER…1154.

Article 197. Second Injuries……………………………………………………………………… …………………………1154 ...

NOTES AND COMMENTS:

  • 1. APPLICATION OF ARTICLE 197…1154; 2. LIABILITY OF STATE INSURANCE FUND FOR THE SECOND

INJURY…1154; 3. CONVERSION OF PERMANENT PARTIAL DISABILITY RATING TO PERMANENT

TOTAL DISABILITY…1154.

Article 198. Assignment of Benefits……………………………………………………………………… …………………1156 ...

NOTES AND COMMENTS:

  • 1. PRINCIPLE OF NON-ASSIGNABILITY OF BENEFITS…1156; 2. EXCEPTION…1156; 3. NON-

TANSFERABILITY OF BENEFITS AND EXEMPTION FROM TAX, LEGAL PROCESS AND LIEN OF

BENEFITS PROVIDED UNDER THE SOCIAL SECURITY ACT OF 1997…1156; 4. EXEMPTION FROM TAX,

LEGAL PROCESS AND LIEN OF BENEFITS PROVIDED UNDER THE GSIS ACT OF 1997…1157.

Article 199. Earned Benefits……………………………………………………………………… …………………………1158 ...

NOTES AND COMMENTS:

  • 1. ENTITLEMENT TO INCOME BENEFITS DURING PERIOD OF DISABILITY…1158; 2. ENTITLEMENT TO

WAGES AND OTHER EARNED BENEFITS PROVIDED UNDER THE CBA, EMPLOYMENT AGREEMENT OR

VOLUNTARY EMPLOYER POLICY OR PRACTICE…1158.

Article 200. Safety Devices……………………………………………………………………… ………………………… 1158

...

...

NOTES AND COMMENTS:

  • 1. PENALTY FOR FAILURE TO INSTALL AND MAINTAIN SAFETY DEVICES…1158; 2. CAUSE OF

SICKNESS, INJURY OR DEATH; DUTY TO ASCERTAIN…1159.

Article 201. Prescriptive Period……………………………………………………………………… …………………… 1159

...

...

NOTES AND COMMENTS:

  • 1. PRESCRIPTIVE PERIOD OF EMPLOYEES’ COMPENSATION CLAIMS UNDER ARTICLE 201…1159; 2.

RULES ON THE RECKONING OF THE PRESCRIPTIVE PERIOD IN COMPENSABLE

CONTINGENCIES…1160; 3. WHEN CLAIMS FILED BEYOND THE 3-YEAR PRESCRIPTIVE PERIOD MAY

STILL BE ALLOWED…1161; 4. PRESCRIPTIVE PERIOD OF WORKMEN’S COMPENSATION CLAIMS

PRIOR TO EFFECTIVITY OF THE LABOR CODE…1165; 5. PRESCRIPTIVE PERIOD OF CLAIMS BY

MINORS AND NON COMPOS MENTIS; WHEN RECKONED…1165; 6. PRESCRIPTIVE PERIOD PROVIDED IN

ARTICLE 201 DISTINGUISHED FROM THOSE FOUND IN ARTICLES 290 AND 291 OF THE LABOR

CODE…1165; 7. PRESCRIPTIVE PERIOD PROVIDED UNDER THE SOCIAL SECURITY ACT OF 1997…1166;

  • 8. PRESCRIPTIVE PERIOD PROVIDED UNDER THE GSIS ACT OF 1997…1167.

Article 202. Erroneous Payment………………………………………………………….……………

……………………1167 ...

NOTES AND COMMENTS:

  • 1. EFFECT OF ERRONEOUS PAYMENT…1168; 2. HOW DOUBT IS RESOLVED IN CASE OF RIVAL

CLAIMANTS…1168.

Article 203. Prohibition……………………………………………………………………… ………………………………1168 ...

NOTES AND COMMENTS:

  • 1. CATEGORICAL PROHIBITION AGAINST CHARGING FOR SERVICES…112. PROHIBITION AGAINST

RETENTION OR DEDUCTION FROM COMPENSATION BENEFITS…1168; 3. 10% ATTORNEY’S FEES;

WHEN ALLOWED…1168; 4. PENALTY FOR VIOLATION OF ARTICLE 203…1169; 5. PROHIBITION ON FEES

TABLE OF CONTENTS

OF AGENTS, ATTORNEYS OR OTHER PERSONS UNDER THE SOCIAL SECURITY ACT OF 1997…1169.

Article 204. Exemption From Levy, Tax, Etc……………………………………………………………………… ……….1170 ...

NOTES AND COMMENTS:

  • 1. EXEMPTION OF STATE INSURANCE FUND FROM ANY GOVERNMENT IMPOSITIONS OR

CHARGES…1170; 2. EFFECT OF FUTURE LAW ON THE EXEMPTION…1170.

Chapter IX……………………………………………………………………… ………………………………………………… 1171

...

..

RECORDS, REPORTS AND PENAL PROVISIONS……………………………………………………………………… ….1171 ...

Article 205. Record of Death or Disability…………………………………………………….………………… …………1171 ...

xxv

NOTES AND COMMENTS:

  • 1. EMPLOYER’S LOGBOOK ON SICKNESS, INJURY, DISABILITY OR DEATH…1171; 2. EFFECT OF

FRAUDULENT CLAIMS INVOLVING THE EMPLOYER…1172; 3. VISITORIAL POWER OF THE SYSTEM;

INSPECTION OF THE LOGBOOK…1172; 4. NOTICE BY EMPLOYER TO THE SYSTEM…1172; 5. PENALTY

FOR VIOLATION OF ARTICLE 205…1172; 6. EMPLOYMENT RECORDS AND REPORTS UNDER THE

SOCIAL SECURITY ACT OF 1997…1173; 7. EMPLOYMENT RECORDS AND REPORTS UNDER THE GSIS

ACT OF 1997…1174.

Article 206. Notice of Sickness, Injury or Death……………………………………………………………………… …

...

....

1175

NOTES AND COMMENTS:

  • 1. REQUIRED NOTICE TO THE EMPLOYER BY THE EMPLOYEE OR HIS DEPENDENTS OF HIS SICKNESS,

INJURY OR DEATH…1175; 2. WHEN NOTICE NOT NECESSARY…1175.

Article 207. Penal Provisions……………………………………………………………………… ……………………… 1176

...

...

NOTES AND COMMENTS:

  • 1. LAWS REFERRED TO IN ARTICLE 207 [A]…1177; 2. APPLICABILITY OF ARTICLE 207 [A] IN RELATION

TO R.A. NO. 1161 AND C. A. NO. 186…1177; 3. PENAL PROVISIONS IN THE SSS LAW REFERRED TO IN

ARTICLE 207 [A]…1177; 4. PENAL PROVISIONS IN THE GSIS LAW REFERRED TO IN ARTICLE 207

[A]…1178; 5. PENALTY FOR FRAUD, COLLUSION, FALSIFICATION, MISREPRESENTATION OR OTHER

ANOMALIES…1180; 6. PENALTY IN CASE THE OFFENDER IS A RECIDIVIST OR AN EMPLOYEE OF THE

ECC, GSIS OR SSS OR A LAWYER, PHYSICIAN OR OTHER PROFESSIONALS…1180.

Article 208. Applicability……………………………………………………………………… …………………………….1180 ....

NOTES AND COMMENTS:

  • 1. APPLICATION OF THE EMPLOYEES’ COMPENSATION PROVISIONS OF THE LABOR CODE

...

1180;

2.

SIGNIFICANCE OF JANUARY 1, 1975…1181; 3. GOVERNING LAW…1181.

Article 208-A. Repeal……………………………………………………………………… ……………………………… 1182

...

...

NOTES AND COMMENTS:

  • 1. ARTICLE 208-A INSERTED BY P.D. NO. 1369…1182; 2. REPEAL OF INCONSISTENT AND CONTRARY

LAWS…1182; 3. LAWS REPEALED UNDER ARTICLE 208-A…1183; 4. PROVISIONS OF THE GSIS LAW

REFERRED TO IN ARTICLE 208-A…1183.

Title III……………………………………………………………………… ………………………………………………………1185 ...

MEDICARE………………………………………………………………………

...

…………………….…………………………

...

1185

Article 209. Medical Care……………………………………………………………………… ……………………………1185 ...

NOTES AND COMMENTS:

  • 1. REPEAL OF R.A. NO. 6111…1185; 2. NATIONAL HEALTH INSURANCE ACT OF 1995…1185; 3. THE

PHILIPPINE HEALTH INSURANCE CORPORATION (PHIC)…1185; 4. CONTINUATION OF THE MEDICARE

PROGRAM UNDER P.D. NO. 1519…1188; 5. TRANSFER OF MEDICARE FUNDS AND FUNCTIONS FROM

OWWA TO PHIC…1189; 6. THE NATIONAL HEALTH INSURANCE FUND…1189; 7. THE NATIONAL

HEALTH INSURANCE PROGRAM UNDER R.A. NO. 7875…1193; 8. COVERAGE, MEMBERSHIP AND

CONTRIBUTIONS…1195; 9. GENERAL PROVISIONS CONCERNING ALL MEMBERS…1200; 10. SPECIFIC

PROVISIONS CONCERNING EMPLOYED MEMBERS AND EMPLOYERS…1203; 11. SPECIFIC PROVISIONS

CONCERNING INDIGENT MEMBERS…1206; 12. SPECIFIC PROVISIONS CONCERNING INDIVIDUALLY

PAYING MEMBERS…1208; 13. SPECIFIC PROVISION CONCERNING RETIREE-MEMBERS…1209; 14.

ENTITLEMENT TO BENEFITS…1209; 15. PAYMENT OF CLAIMS…1212; 16. ACCREDITATION AND

QUALITY ASSURANCE OF THE NHIP1216; 17. RULES OF PROCEDURE OF THE CORPORATION…1232;

18. OFFENSES AND PENALTIES…1241; 19. OFFENSES OF INSTITUTIONAL HEALTH CARE

PROVIDERS…1242; 20. OFFENSES OF HEALTH CARE PROFESSIONALS…1244; 21. OFFENSES OF

MEMBERS…1245; 22. OFFENSES OF OFFICERS AND EMPLOYEES OF THE CORPORATION…1245; 23.

OFFENSES OF EMPLOYERS…1246; 24. PROSECUTION OF CRIMINAL OFFENSES… 1247; 25. GRIEVANCE

AGAINST PROGRAM IMPLEMENTORS…1248; 26. ADMINISTRATIVE PROTESTS RELATED TO

PROCESSING AND PAYMENT OF CLAIMS…1252.

Title IV…………………………………………………………………………

...

……………………………………………………1254

ADULT EDUCATION…………………………………………………………………………

...

………………………………… 1254 ..

Article 210. Adult Education…………………………………………………………………………

...

……………………

...

1254

NOTES AND COMMENTS:

1. ADULT EDUCATION PROGRAM…1254; 2. WHO INITIATES THE ESTABLISHMENT OF THE

PROGRAM…1254.

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